On 14 April, the government submitted new proposals on certain points regarding the current rules on Furlough and liquidity enhancement via the tax account.
Short-time work - enhanced system.
In the amended proposal, the government has chosen to further strengthen the short-term furlough system. The proposal includes an additional tier for short-term furlough where working hours can be reduced by up to 80 percent.
Below is the updated table of costs between workers, employers, and the state, where level 4 is the government's proposal from April 14th.
| Level | Reduction in working hours | Salary Reduction |
Employer | Statistics | Employer's reducing labour costs |
| 1 | 20 | 4 % | 1 % | 15 % | – 19 % |
| 2 | 40 | 6 % | 4 % | 30 % | – 36 % |
| 3 | 60 | 7,5 % | 7,5 % | 45 % | – 53 % |
| 4 | 80 | 12 % | 8 % | 60 % | – 72 % |
The proposal is to enter into force on 1 June and can be used during May, June and July 2020.
Otherwise, no changes have been proposed regarding the rules on short-term furloughs.
Liquidity enhancement via the tax account – reduced interest rate.
The government has decided to submit a proposal to lower the interest rate for tax payment deferrals. According to the current rules, a deferral fee of 0.3 % percent of the deferred amount is charged per commenced calendar month, starting the month after the deferral was granted up to and including the month the deferral is due for payment. In addition to the deferral fee, the Swedish Tax Agency's general base interest rate will be calculated daily on the deferred amount from the day after it was granted. The interest rate is currently 1.25 % annually.
The government has now presented proposals to lower the interest rate, which will mean that during the first six months of the deferral, only an interest rate of 1.25 % will be charged. After these six months, a deferral fee of 0.2 % per month will be added. This represents a halving of the current interest rate level and corresponds to a deductible interest rate of 3.1 % per year.
Otherwise, no changes have been proposed regarding the rules on liquidity enhancement in the tax account.
Our assessment is that both proposals will pass in the Riksdag.
If you require assistance in accessing any of the government's support packages, please contact your MOORE representative or your local MOORE office.
