New crisis package for small businesses – employer contribution is reduced
The government, C and L agree on a new crisis package to support Swedish small businesses in the corona crisis. “What we see is a combined demand shock and supply shock,” says Finance Minister Magdalena Andersson (S) at a press conference.
Part of the package is a temporary reduction of employer and self-employment contributions for companies with up to 30 employees, so that only the retirement pension is paid. This results in a tax credit of up to SEK 5,300 per employee per month, according to Direkt. The public finance cost for this is estimated at SEK 33 billion.
The government also wants to see a temporary rebate for rental costs in exposed industries – such as cheap shopping, hotels, restaurants – and a government loan guarantee. Finally, the rules for accrual funds should be changed temporarily so that self-employed workers who have been hit hard as a result of the virus outbreak will receive reduced tax.
“Finally,” is Breakits co-founder Stefan Lundell’s reaction.
“And I respond both as an economics journalist and a small business owner,” he writes in a comment.
Lundell believes that the government’s actions will mean a “temporary respite” for entrepreneurs who have been desperate.