The EFTA Surveillance Authority approves temporary Norwegian rules on asset depreciation due to the COVID-19 pandemic

COVID-19 Pandemic: ESA approves temporary Norwegian rules on asset depreciation*

The EFTA Surveillance Authority (ESA) has today approved a measure by the Norwegian government to stimulate liquidity for businesses by allowing an increased initial depreciation rate for investments in assets such as passenger cars, tractors and certain electronic installations in buildings, until the end of the year.

An increased initial depreciation rate for these assets enables companies making investments to slightly reduce the effective tax rate on investments of this type. This in turn improves the possibilities for a company to obtain credit financing or equity for investment in this type of asset.

The aid measure will result in foregone tax revenue for the State, which would normally have been paid by businesses. The maximum aid amount that can be obtained by any single beneficiary is EUR 800 000. The expected budget for the measure is NOK 1,2 billion (around EUR 110m).

This measure is targeted at preventing an expected decline in investment following the COVID-19 pandemic and providing a broad stimulus to the economy.

The scheme was notified to ESA on 15 July 2020. You can read ESA’s decision here.

*This is the original title of the press release. The title above has been amended in order to match the e-Competitions format. Individual authors are welcome to provide original independent commentaries on the case law. Articles are subject to approval by the Board of e-Competitions Bulletin before publication based on the Editorial Policy (click here).

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EFTA Surveillance Authority, The EFTA Surveillance Authority approves temporary Norwegian rules on asset depreciation due to the COVID-19 pandemic, 20 July 2020, e-Competitions Interim measures, Art. N° 96333

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