Enterprises which are eligible to apply for grants

The enterprise must be liable to pay tax in Norway (see Section 2-2 first paragraph of the Tax Act) or the partners in the enterprise must be liable to pay tax in Norway on the enterprise’s income (see Section 2-2 third paragraph of the Tax Act). The scheme also covers cases where the enterprise or its owner/proprietor is taxed in Norway on the enterprise’s business income in the country (see Section 2-3 first paragraph (b) of the Tax Act). Institutions and organisations referred to in Section 2-32 of the Tax Act which operate commercially (see Section 2-32 second paragraph of the Tax Act) are covered by the scheme as regards the part of the enterprise that is liable to pay tax.

• enterprises which are subject to a registration obligation under Section 2-1 of the Register of Business Enterprises Act must be registered in the Register of Business Enterprises in order to apply for grants
• sole proprietorships not registered in the Register of Business Enterprises must be registered in the Central Coordinating Register for Legal Entities in order to apply for grants.

‘Added costs’ means costs incurred during the grant period which:

1. are linked to entry quarantine,
2. exceed the costs that the enterprise would normally have incurred as a result of the use of foreign or other visiting labour, and
3. follow directly from changes made by the enterprise in order to comply with the entry quarantine provisions stipulated in the Infection Control Act or provisions issued pursuant to the Infection Control Act

Salary costs for employees or contractors in entry quarantine are not covered by the grant scheme.

Only enterprises with employees may be eligible for grants. This means that enterprises must:

• be registered in NAV’s State Register of Employers and Employees (the Aa Register) at the time the grant is awarded, and
• have at least one employee who has been paid salary for at least one calendar month during the period for which a grant is sought

There is no requirement to have employees in the following cases:

• sole proprietorships where income from the enterprise is the holder/proprietor’s main source of income (income from the enterprise is considered to be the main source of income when it constituted at least 50 percent of the holder/proprietor’s personal income in either 2019 or 2020 or during the period for which a grant is sought).
• general partnership (ANS/DA) where income from the enterprise is the main source of income of at least one of the personal partners (income from the enterprise is considered to be the main source of income when it constituted at least 50 percent of one of the partners’ personal income in either 2019 or 2020 or during the period for which a grant is sought).
• the enterprise is a fishing or hunting business

• entry quarantine for the workers and contractors for whom a grant is sought must have been completed under the auspices of, or by agreement with, the applicant and must have been paid for by the applicant
• The entry quarantine must have been completed in accordance with the provisions of the COVID-19 Regulation or other regulations issued pursuant to the Infection Control Act

• complied during the grant period with applicable registration and reporting obligations pursuant to the A-opplysning Act relating to the workers and contractors for whom a grant is sought (this requirement does not apply to workers and contractors on ships)
• in the case of contractors who are regarded as employees of a foreign enterprise that is not registered in the Coordinating Register for Legal Entities, the assignment and contractor must registered in the Assignment and Employee Register (Oppdrags- og arbeidsforholdsregisteret)
• contractors who are self-employed must be registered in the Coordinating Register for Legal Entities
• work performed by workers or contractors for whom a grant is sought must have been performed on Norwegian territory, in Norway’s Economic Zone or on the Norwegian continental shelf
• were subject to entry quarantine obligations imposed by the State during the grant period
• completed the entry quarantine on mainland Norway

The enterprise must have the permits, approvals or licences required for its operation.

The enterprise must not:

• be the subject of bankruptcy proceedings or under voluntary or compulsory liquidation
• the same applies to the holders/proprietors of sole proprietorships and partners in general partnerships

Taxes, charges and withholding tax which fell due before 29 February 2020 must have been paid.

• tax return for wealth and income tax (applies to enterprises established during or before 2019)
• annual financial statements for 2019 (if the enterprise is obliged to prepare annual financial statements for 2019)
• VAT return for 2019 with a submission deadline before the end of the grant period
• requested documentation in connection with previous applications for compensation

• have a bank account that is listed in the banks’ joint account and address register
• able to document its full ownership structure
• persons in senior roles linked to the enterprise may not be disqualified from running a business following bankruptcy

Corporate groups are covered by separate rules.