Sweden: Swedish government extends support for businesses during the COVID-19 crisis

• Reorientation support for companies with considerable declines in turnover to include August, September and October 2020. This support previously only covered May, June and July 2020. 

• Short-term work allowance scheme to be extended until 30th of June 2021. This support was previously due to end on the 31st of December 2020. The proposal entails that short-time work can be extended up to seven additional months, or at the longest to 30 June 2021. 

• Temporary tax payment respite scheme to be extended. The Swedish government is proposing a one year extension of the temporary tax payment respite scheme, which was due to expire in March 2021. The scheme allows for companies to further postpone their payments of e.g. social security fees and value added tax. Companies wishing to take part in the scheme will have to apply for pre-approval with the Swedish Tax Authority. 

The proposal will be handed to the parliament (Sw. Riksdagen) early next year, which will then make a decision to adopt the proposed changes.