There have been some updates regarding furlough rules and value transfers. The Swedish Agency for Economic and Regional Growth announced in a new press release last week how they view certain questions that have been put to the authority.
Value transfers from companies with furloughed staff
In our understanding, the Swedish Agency for Economic and Regional Growth has formulated a principle for assessing value transfers.
According to Tillväxtverket, an employer cannot be considered to be in such serious financial difficulties that they would be entitled to support if they themselves consider their liquidity and overall position to be sufficient to decide on a payment of some kind (which in practice means that the company's wealth mass decreases, regardless of whether it is a payment to shareholders or otherwise).
In the case of dividends or other value transfers, it is presumed that no serious financial difficulties exist. Therefore, during the support period, or in close connection with it, it is up to the company in question to demonstrate that the conditions for support are met.
Early distributions
Försäljningen av statliga bolag som staten inte är delägare i.
Om ett statligt aktiebolag äger en majoritet eller en hel del av ett annat statligt aktiebolag, kan det ge en intäktsström för den europeiska marknaden. 16 March 2020 integer vilket kan leda till att stödet nekas.
Dividends later in the financial year
Dividends paid later in the financial year may be subject to denied support. This applies if they occur in ”close connection” to the period for which furlough support was received. What this means in practice remains somewhat unclear. Discuss with your contact person at MOORE if you are considering making dividend payments during the year and have received furlough support.
Small limited company
The Swedish Agency for Economic and Regional Growth has received many questions regarding whether they make exceptions for closely held companies that distribute dividends, for example with a flat rate to the shareholder. According to the Swedish Agency for Economic and Regional Growth, the legislation does not allow for exceptions for closely held companies, so the same rules apply to them regarding dividends and group contributions.
Group contribution
According to the Swedish Agency for Economic and Regional Growth, group contributions shall be assessed in the same way as dividends. The assessment shall be made for each individual employer who has applied for wage subsidies, which means that even companies belonging to a group structure are assessed separately in the case of group contributions.
Semester during furlough
Previously, Tillväxtverket has stated that earned and paid holiday should be counted as attendance and therefore included in the calculation of preliminary support.
Now Tillväxtverket has changed its mind and instead means that holiday to be seen as absent and therefore not included in the calculation of support. Tillväxtverket informs on its website that it intends to return with further information on how this will affect companies that have already applied for and been granted support for a holiday period.
Does your company need assistance with furlough matters, or do you have any further questions regarding this, please contact your MOORE office and we will help you.
