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Norway Offers Tax Remedies for Businesses Amid Virus Outbreak

March 10, 2020, 3:39 PM

Norway’s Finance Ministry is introducing tax relief, include postponing a wealth tax, to help companies affected by the coronavirus outbreak stay afloat.

Companies with losses in sectors that rely on customers and are threatened by the virus, such as those in the tourism industry, can “return the deficit” against taxes they had paid on profits from previous years, the Finance Ministry said in an announcement Tuesday. The measure will make it easier for businesses to get short-term loans from banks.

  • “This is important for healthy and good companies not to go bankrupt, even if they are severely affected by the coronavirus right now,” Finance Minister Jan Tore Sanner said in a statement.
  • Owners of companies facing losses tied to the spread of Covid-19 can postpone paying the wealth tax, which is usually expected to be paid even if the company goes into deficit. “In that case, companies with deficits will not be able to pay dividends to owners to cover wealth tax,” the announcement said.
  • Norway’s move comes as other countries like Germany and Italy have passed their own measures to help businesses and boost economic slowdowns.

To contact the reporter on this story: Hamza Ali in London at hali@bloombergtax.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Sony Kassam at skassam1@bloombergtax.com

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