On 16 March 2020, the Swedish Government presented additional measures to mitigate the financial impact of the COVID-19 outbreak. The crisis package presented, can depending on how the situation develops, encompass more than SEK 300 billion if the entire liquidity reinforcement through tax accounts is used. The main measures taken by the Government are as follows:
Short-term layoffs
The employers’ wage costs can be halved, in that the central government will cover a larger share of the costs. This model is similar to short-time work, but the subsidy level is significantly increased. The employee receives more than 90 percent of their wage. The aim is to save Swedish jobs. It is proposed that the proposal on short-term layoffs enter into force on 7 April and be in effect throughout 2020, but be applied from 16 March 2020.
Sick pay responsibility for two months
It is proposed that the central government assume the entire cost of all sick pay during April and May. Self-employed persons will also be compensated in that they can receive standardized sick pay for days 1 to 14.
Liquidity reinforcement via tax accounts
Under this proposal, companies can defer payment of employers’ social security contributions, preliminary payments of corporate income, and value-added tax that are reported monthly or quarterly. Company payment respite covers tax payments for three months and is granted for up to 12 months. This replaces the previously presented proposal. It is proposed that the new regulations take effect on 7 April 2020, but can be retroactively applied from 1 January 2020. This means that companies that have paid into their tax account for January to March can receive repayment of the tax from the Swedish Tax Agency. Payment respite will not be granted to companies that mismanage their finances or are in some other way unethical. Nor will respite be granted to companies that have large tax debts. The proposals on respite and short-term layoffs will now proceed to the Council on Legislation for fast-track consideration.
