Coronavirus: Guidance for businesses

The purpose of the new support for business costs is to reduce the number of companies that go bankrupt due to the coronavirus crisis. To be eligible, both the business sector and the individual company must have experienced a market decrease in turnover. The number of sectors covered is 368. The State Treasury will provide further instructions on how to apply for the support.

The President of the Republic approved the Act on Support for Business Costs and the Government issued the related Decree on 26 June 2020. The Act enters into force on 1 July 2020 and companies may apply to the State Treasury for the support as from 7 July 2020.

According to the Act and Decree, the terms and conditions for the support for business costs are the following:

• To be eligible for the support for business costs, the sales of the business sector must have decreased by at least 10% compared to the reference period. If the company operates in such a sector, another requirement is that the company’s own turnover has decreased by at least 30% compared to the reference period. The turnover decrease is determined based on the value-added tax returns submitted to the Tax Administration.
• The total number of eligible business sectors is 368, listed in the annex to the Government Decree. The classification is based on the Standard Industrial Classification used by the Statistics Finland that is intended for the classification of businesses and other organisations or individual workplaces according to their economic activities. The definitions of the classification are based on the production inputs and processes typical for the activity and goods and services produced. Sectors with only one company have been combined into larger groups of sectors.
• The turnover of the sector in April 2020 is compared to the average turnover in March–June 2019.
• The turnover of the companies in April–May 2020 is compared to their average turnover in March–June 2019. If the company was established after June 2019, the turnover will be compared to the average of the company’s sales in January–February 2020.
• Support is granted on the basis of the company's fixed costs and payroll costs. The maximum amount of support payable for two months is EUR 500,000. Support amounting to less than EUR 2,000 is not paid because this would have no effect on preventing bankruptcies. The fixed costs that entitle to the support may account for no more than half of the company’s average turnover during the reference period.
• The State Treasury may also accept applications to be processed even if the company concerned does not operate in a sector covered by the decree where the turnover has decreased by 10%. In such a case the company must present particularly compelling evidence that the decrease in turnover has been due to the coronavirus crisis.    
• Foundations and associations that engage in business activities may also be eligible.
• Instead, companies that according to the EU State aid rules were in financial difficulties on 31 December 2019 and have neglected their obligations or are bankrupt are not entitled to the support for business costs.
• A company may apply for this support even if it has already received other direct financial support due to the coronavirus crisis, but such payments are deducted from the support for business costs. Support for the food and beverage service sector and COVID-19 support for sole entrepreneurs and self-employed people are deducted in full, and 70% of the support for business development granted by Business Finland and the ELY Centres is deducted.

More information:

Press release 26 June 2020: Act and Decree on Support for Business Costs approved: 368 eligible business sectors

Press release 5 June 2020: The Government's proposal for business cost support to Parliament: decline in the turnover of the sector of industry and of the individual company are preconditions for eligibility to receive support

Press release 14 May 2020: Government to introduce a new form of support to businesses to cover costs

State Treasury: Frequently asked questions about the support for business costs

Obtain finance

First contact your bank or finance provider

If your business is temporarily in financial difficulty, you should take early action by first contacting your bank or other business finance provider.

The banks have already announced they are ready to consider loan repayment holidays and payment rescheduling due to the exceptional situation caused by the coronavirus epidemic. The Government is also taking action to improve the ability of banks to provide business financing.

Apply for financial support from your municipality

As a sole entrepreneur or self-employed person without employees (‘yksinyrittäjä’), you can apply for municipal financial support during the coronavirus crisis. To apply for this support, you must be a sole entrepreneur or self-employed person without employees who is engaged full-time in Finland in some form of economic activity, regardless of its legally defined format or its source of financing (i.e. it covers all types of companies).

The municipalities will begin taking applications as soon as possible from sole entrepreneurs and self-employed persons without employees. Applications should be made to the municipality in which the business is based, i.e. the municipality of domicile stated in the Business Information System (YTJ). Each municipality will decide how to arrange its application system, using either online applications or printed forms. The municipalities will provide applicants with advice on how to apply and will process the applications in the order in which they are received.

The municipal financial support available to sole entrepreneurs and self-employed persons without employees consists of a lump sum payment of EUR 2,000 towards the costs of running their business in the current circumstances. These costs include premises and equipment costs related to operating the business, and bookkeeping and office expenses. The financial support can be granted for costs incurred during the period 16 March – 31 August 2020.

This category of ‘sole entrepreneurs and self-employed persons without employees’ means self-employed people who do not employ anyone else. It means those who are under the Finnish categories of ‘yrittäjä’ and ‘ammatinharjoittaja’ (both ‘entrepreneur’/‘self-employed’) but who have no employees. It also includes freelancers.

More information:

Questions and answers on coronavirus-related support for sole entrepreneurs 

Finnvera offers guarantees and loan repayment holidays

Finnvera is a state-owned company that provides specialised financing. It primarily offers various guarantees as security for business finance provided by banks. All types of companies are eligible for Finnvera's financing. Associations and non-profit foundations are not eligible, however. 

If your business has a loan from Finnvera, Finnvera can grant loan repayment holidays on a flexible basis according to your needs.

Finnvera also grants guarantees on new loans. In such cases, you should first contact your own bank, as the bank will apply for a guarantee on behalf of your business. A Finnvera guarantee can cover 80 per cent of a bank loan if your business is entered in the Trade Register. Finnvera guarantees cannot be granted if you are self-employed but do not have your own company (‘kevytyrittäjä’, literally ‘light self-employed’), or if you work directly through a tax card, for example as a freelancer.

The guarantees are not a form of direct financial support. Finnvera charges a fee for its guarantees, and it uses these fees to cover its share of the credit losses that can occur when guarantees are given as security for loans. Guarantees of up to EUR 1 million are granted mainly without any security requirements. The fee charged depends on, for example, the loan period and the risk classification, which is based on the applicant company’s financial statements data. The charges made must also comply with EU regulations and the rules on government support. Finnvera is not permitted to compete with banks over financing charges.

More information on Finnvera’s website 

Supporting businesses in their tax affairs

Entrepreneurs and self-employed persons and businesses in general, and their accountants too, may encounter difficulties in managing tax affairs as a result of the coronavirus situation. In cases of illness, for example, you can ask the Tax Administration for extra time to file your business’s tax return, and the charge for a late VAT return can be waived if there are justified special reasons for doing so.

If your business is in financial difficulty, you can request a rearrangement of your tax payments under new, more suitable terms. Note that you can also apply for changes to your tax prepayments in the Tax Administration’s ‘MyTax’ service if it looks like your business’s performance will fall short of the estimates made earlier.

More information and services on the Tax Administration's website  

Note: unemployment benefit to be available to entrepreneurs and self-employed

Entrepreneurs are temporarily entitled to labour market support to deal with the sudden and unforeseen decline in demand due to the coronavirus epidemic. This solution applies to all entrepreneurs regardless of the type of business.

Labour market support can be paid to entrepreneurs between 16 March and 30 June 2020.

More information:

Press release of the Ministry of Economic Affairs and Employment 7 April 2020: The Act on the Right of Entrepreneurs to Unemployment Security enters into force on 8 April 2020

Questions and answers on entrepreneurs’ right to social security

Obtain finance

First contact your bank or finance provider

If your business is temporarily in financial difficulty, you should take early action by first contacting your bank or other business finance provider.

The banks have already announced they are ready to consider loan repayment holidays and payment rescheduling due to the exceptional situation caused by the coronavirus epidemic. The Government is also taking action to improve the ability of banks to provide business financing.

Application period for business support from an ELY Centre has been closed

Applications for coronavirus-related support provided by the ELY Centres a will not be accepted after 16.15 on 8 June 2020.

Micro-enterprises that have suffered from market and production disturbances due to the coronavirus epidemic could apply for business support from an ELY Centre (full name: Centre for Economic Development, Transport and the Environment). The support covered all types of companies.

The ELY Centre’s business support could be granted to businesses with no more than five workers at the time of submitting the application. Businesses in any sector were eligible for the support, with the exception of those in agriculture, forestry and fisheries and the processing of agricultural produce.

Businesses run by two or more entrepreneurs or self-employed persons could also apply for business support from an ELY Centre, provided that the business had no more than five people altogether. The ELY Centre support was not available, however, to sole entrepreneurs or self-employed persons without employees.

The business support was, additionally, intended for private traders (‘yksityinen elinkeinonharjoittaja’, ‘toiminimi’) employing more than five people.

More information on ELY Centres’ website

Finnvera offers guarantees and loan repayment holidays

Finnvera is a state-owned company that provides specialised financing. It primarily offers various guarantees as security for business finance provided by banks. All types of companies are eligible for Finnvera's financing. Asociations and non-profit foundations are not eligible, however. 

If your business has a loan from Finnvera, Finnvera can grant loan repayment holidays on a flexible basis according to your needs.

Finnvera also grants guarantees on new loans. In such cases, you should first contact your own bank, as the bank will apply for a guarantee on behalf of your business.

The guarantees are not a form of direct financial support. Finnvera charges a fee for its guarantees, and it uses these fees to cover its share of the credit losses that can occur when guarantees are given as security for loans. Guarantees of up to EUR 1 million are granted mainly without any security requirements. The fee charged depends on, for example, the loan period and the risk classification, which is based on the applicant company’s financial statements data. The charges made must also comply with EU regulations and the rules on government support. Finnvera is not permitted to compete with banks over financing charges.

More information on Finnvera’s website 

Flexibility over pension insurance contributions and lay-offs

Payment of pension insurance contributions is postponed by three months. The Government is also proposing that employers’ pension insurance contributions be reduced temporarily by 2.6 percentage points in 2020.

To help businesses adapt to the current conditions, the notification period required before lay-offs can be made is temporarily shortened, and so too is the duration of the statutory codetermination procedure (cooperation negotiations). These legislative amendments are in force from 1 April to 30 June 2020. The employer must notify the affected employees of a lay-off no later than five days before the lay-off begins. The previous time limit was 14 days. The duration of the codetermination procedure regarding lay-offs is shortened to five days from the current requirement of six weeks or 14 days.

In addition, employers may now lay off employees who are on a fixed-term contract under the same conditions as laying off employees with open-ended contracts. It is now also possible for an employer to terminate an employee’s contract on financial or production-related grounds during the person’s trial period. The obligation to re-employ an employee if the work situation picks up is extended, however: the employer is obligated, for a period of nine months, to re-employ those employees who were dismissed for financial or production-related reasons between 1 April and 30 June.

More information: 

Press release of the Ministry of Economic Affairs and Employment 31 March 2020: Notice period for lay-offs and the duration of co-operation negotiations will be temporarily shortened
Varma: Information on coronavirus situation (in Finnish)
Ilmarinen: Questions and answers (in Finnish)
Elo: Elo customers are granted flexibility for the payment of their insurance contributions if needed
Veritas: Coronavirus: Frequently asked questions

Supporting businesses in their tax affairs

Entrepreneurs and self-employed persons and businesses in general, and their accountants too, may encounter difficulties in managing tax affairs as a result of the coronavirus situation. In cases of illness, for example, you can ask the Tax Administration for extra time to file your business’s tax return, and the charge for a late VAT return can be waived if there are justified special reasons for doing so.

If your business is in financial difficulty, you can request a rearrangement of your tax payments under new, more suitable terms. Note that you can also apply for changes to your tax prepayments in the Tax Administration’s ‘MyTax’ service if it looks like your business’s performance will fall short of the estimates made earlier.

More information and services on the Tax Administration's website  

Note: unemployment benefit to be available to entrepreneurs and self-employed

Entrepreneurs are temporarily entitled to labour market support to deal with the sudden and unforeseen decline in demand due to the coronavirus epidemic. This solution applies to all entrepreneurs regardless of the type of business.

Labour market support can be paid to entrepreneurs between 16 March and 30 June 2020.

More information:

Press release of the Ministry of Economic Affairs and Employment 7 April 2020: The Act on the Right of Entrepreneurs to Unemployment Security enters into force on 8 April 2020

Questions and answers on entrepreneurs’ right to social security

Obtain finance

First contact your bank or finance provider

If your business is temporarily in financial difficulty, you should take early action by first contacting your bank or other business finance provider.

The banks have already announced they are ready to consider loan repayment holidays and payment rescheduling due to the exceptional situation caused by the coronavirus epidemic. The Government is also taking action to improve the ability of banks to provide business financing.

Application period for business development funding from Business Finland has been closed

Applications for coronavirus-related support provided by Business Finland will not be accepted after 16.15 on 8 June 2020.

If business was suffering from the disruptive circumstances caused by coronavirus, company could apply for business development funding from Business Finland. The funding was intended for the following types of companies: limited liability companies, public limited companies, general partnerships, limited partnerships, and cooperatives.

The funding was aimed at almost all sectors where business activity has been hit hard by market and production chain disruptions as a result of the coronavirus epidemic. With this funding, businesses could identify, plan and implement new development measures to deal with these effects and address any further disruption.

The business development funding was intended for small and medium-sized enterprises operating in Finland and employing between 6 and 250 people. The following were not eligible for this Business Finland funding: private traders (‘yksityinen elinkeinonharjoittaja’, ‘toiminimi’), sole entrepreneurs and self-employed persons without employees, large corporations, public organisations (foundations, associations), companies based in Åland, agricultural primary production, and companies in fisheries and aquaculture.

Business Finland  processed the funding applications of any micro-enterprises with 1–5 workers if these were already submitted before 27 March 2020.

Business Finland is very flexible about any changes in project schedules and loan repayment schedules, and generally seeks flexibility in all its activities. Where necessary, Business Finland can extend the duration of funded projects and loan periods, and make payments more quickly.

More information on Business Finland’s website 

Apply for Business Finland’s new RDI loans

Business Finland is introducing a new research, development and innovation loan (RDI loan). This will be available to limited companies of all sizes (limited liability companies and public limited companies) and in all sectors.

The loan is intended for all companies operating in labour-intensive sectors in Finland that are suffering from business disruptions caused by the coronavirus crisis. The purpose of this loan finance is to help companies keep their employees in work during the crisis and also to encourage companies to explore opportunities for providing new jobs in Finland after the crisis is over.

The application system for RDI loans will be opened at the end of April/start of May.

More information on Business Finland’s website 

Finnvera offers guarantees and loan repayment holidays

Finnvera is a state-owned company that provides specialised financing. It primarily offers various guarantees as security for business finance provided by banks. All types of companies are eligible for Finnvera's financing. Associations and non-profit foundations are not eligible, however.

If your business has a loan from Finnvera, Finnvera can grant loan repayment holidays on a flexible basis according to your needs.

Finnvera also grants guarantees on new loans. In such cases, you should first contact your own bank, as the bank will apply for a guarantee on behalf of your business. Finnvera's guarantee can cover up to 80 per cent of the bank loan.

If the capital of the guaranteed loan is no more than EUR 1 million, Finnvera can fast-track the processing and decision-making on the application. The previous limit for fast-track processing was EUR 150,000.

The government proposal on the amendments is to be submitted to Parliament in April.

The guarantees are not a form of direct financial support. Finnvera charges a fee for its guarantees, and it uses these fees to cover its share of the credit losses that can occur when guarantees are given as security for loans. Guarantees of up to EUR 1 million are granted mainly without any security requirements. The fee charged depends on, for example, the loan period and the risk classification, which is based on the applicant company’s financial statements data. The charges made must also comply with EU regulations and the rules on government support. Finnvera is not permitted to compete with banks over financing charges.

More information on Finnvera’s website 

Be part of Tesi’s new funding programme

Tesi (Finnish Industry Investment Ltd) is a state-owned investment company specialising in the venture capital and private equity market. It is launching a funding programme to ensure that medium-sized companies that have run into temporary difficulties due to the coronavirus epidemic will be able to stay in business. Dealing with medium-sized companies, the programme will focus on businesses that are highly important in Finland in terms of their employment impact and turnover (turnover of at least EUR 10 million, more than 50 employees, profitable business operations before the crisis and potential for this in the future too). The investments will vary between EUR 1 million and EUR 10 million. The Tesi programme covers limited liability companies and public limited companies.

The aim is to prevent viable businesses going bankrupt as a consequence of a highly exceptional crisis that has had nothing to do with their operations. Tesi’s stabilisation programme will invest in businesses that are in a good position to overcome the financial difficulties caused by the coronavirus epidemic but require additional funding. This programme to deal with the liquidity problems faced by businesses complements the follow-on funding that Tesi announced earlier.

Investments to be made from this temporary programme offer a faster track to helping businesses cope with their liquidity crisis. Applications for this stabilisation funding will be taken on the Tesi website from Tuesday 14 April 2020. At the same time Tesi will also publish further details about the programme and the funding application process.

More information on Tesi's website (in Finnish) 

Flexibility over pension insurance contributions and lay-offs

Payment of pension insurance contributions is postponed by three months. The Government is also proposing that employers’ pension insurance contributions be reduced temporarily by 2.6 percentage points in 2020.

To help businesses adapt to the current conditions, the notification period required before lay-offs can be made is temporarily shortened, and so too is the duration of the statutory codetermination procedure (cooperation negotiations). These legislative amendments are in force from 1 April to 30 June 2020. The employer must notify the affected employees of a lay-off no later than five days before the lay-off begins. The previous time limit was 14 days. The duration of the codetermination procedure regarding lay-offs is shortened to five days from the current requirement of six weeks or 14 days.

In addition, employers may now lay off employees who are on a fixed-term contract under the same conditions as laying off employees with open-ended contracts. It is also now possible for an employer to terminate an employee’s contract on financial or production-related grounds during the person’s trial period. The obligation to re-employ an employee if the work situation picks up is extended, however: the employer is obligated, for a period of nine months, to re-employ those employees who were dismissed for financial or production-related reasons between 1 April and 30 June.

More information: 

Press release of the Ministry of Economic Affairs and Employment 31 March 2020: Notice period for lay-offs and the duration of co-operation negotiations will be temporarily shortened
Varma: Information on coronavirus situation (in Finnish)
Ilmarinen: Questions and answers (in Finnish)
Elo: Elo customers are granted flexibility for the payment of their insurance contributions if needed
Veritas: Coronavirus: Frequently asked questions

Supporting businesses in their tax affairs

Entrepreneurs and self-employed persons and businesses in general, and their accountants too, may encounter difficulties in managing tax affairs as a result of the coronavirus situation. In cases of illness, for example, you can ask the Tax Administration for extra time to file your business’s tax return, and the charge for a late VAT return can be waived if there are justified special reasons for doing so.

If your business is in financial difficulty, you can request a rearrangement of your tax payments under new, more suitable terms. Note that you can also apply for changes to your tax prepayments in the Tax Administration’s ‘MyTax’ service if it looks like your business’s performance will fall short of the estimates made earlier.

More information and services on the Tax Administration's website 

Obtain finance

First contact your bank or finance provider

If your business is temporarily in financial difficulty, you should take early action by first contacting your bank or other business finance provider.

The banks have already announced they are ready to consider loan repayment holidays and payment rescheduling due to the exceptional situation caused by the coronavirus epidemic.

 The Government is also taking action to improve the ability of banks to provide business financing.

Application period for business development funding from Business Finland has been closed

Applications for coronavirus-related support provided by Business Finland will not be accepted after 16.15 on 8 June 2020.

If business was suffering from the disruptive circumstances caused by coronavirus, company could apply for business development funding from Business Finland. The funding was intended for the following types of companies: limited liability companies, public limited companies, general partnerships, limited partnerships, and cooperatives.

The funding was aimed at almost all sectors where business activity has been hit hard by market and production chain disruptions as a result of the coronavirus epidemic. With this funding, businesses could identify, plan and implement new development measures to deal with these effects and address any further disruption.

The business development funding was intended for small and medium-sized enterprises operating in Finland and employing between 6 and 250 people. The following were not eligible for this Business Finland funding: private traders (‘yksityinen elinkeinonharjoittaja’, ‘toiminimi’), sole entrepreneurs and self-employed persons without employees, large corporations, public organisations (foundations, associations), companies based in Åland, agricultural primary production, and companies in fisheries and aquaculture.

Business Finland  processed the funding applications of any micro-enterprises with 1–5 workers if these were already submitted before 27 March 2020.

Business Finland is very flexible about any changes in project schedules and loan repayment schedules, and generally seeks flexibility in all its activities. Where necessary, Business Finland can extend the duration of funded projects and loan periods, and make payments more quickly.

More information on Business Finland’s website 

Apply for Business Finland’s new RDI loans

Business Finland is introducing a new research, development and innovation loan (RDI loan). This will be available to limited companies of all sizes (limited liability companies and public limited companies) and in all sectors.

The loan is intended for all companies operating in labour-intensive sectors in Finland that are suffering from business disruptions caused by the coronavirus crisis. The purpose of this loan finance is to help companies keep their employees in work during the crisis and also to encourage companies to explore opportunities for providing new jobs in Finland after the crisis is over.

The application system for RDI loans will be opened at the end of April/start of May.

More information on Business Finland’s website 

Finnvera offers guarantees and loan repayment holidays

Finnvera is a state-owned company that provides specialised financing. It primarily offers various guarantees as security for business finance provided by banks. All types of companies are eligible for Finnvera's financing. Associations and non-profit foundations are not eligible, however. 

If your business has a loan from Finnvera, Finnvera can grant loan repayment holidays on a flexible basis according to your needs.

Finnvera also grants guarantees on new loans. In such cases, you should first contact your own bank, as the bank will apply for a guarantee on behalf of your business. Finnvera's guarantee can cover up to 80 per cent of the bank loan.

If the capital of the guaranteed loan is no more than EUR 1 million, Finnvera can fast-track the processing and decision-making on the application. The previous limit for fast-track processing was EUR 150,000.

The guarantees are not a form of direct financial support. Finnvera charges a fee for its guarantees, and it uses these fees to cover its share of the credit losses that can occur when guarantees are given as security for loans. Guarantees of up to EUR 1 million are granted mainly without any security requirements. The fee charged depends on, for example, the loan period and the risk classification, which is based on the applicant company’s financial statements data. The charges made must also comply with EU regulations and the rules on government support. Finnvera is not permitted to compete with banks over financing charges.

More information on Finnvera’s website 

Be part of Tesi’s new funding programme

Tesi (Finnish Industry Investment Ltd) is a state-owned investment company specialising in the venture capital and private equity market. It is launching a funding programme to ensure that medium-sized companies that have run into temporary difficulties due to the coronavirus epidemic will be able to stay in business. Dealing with medium-sized companies, the programme will focus on businesses that are highly important in Finland in terms of their employment impact and turnover (turnover of at least EUR 10 million, more than 50 employees, profitable business operations before the crisis and potential for this in the future too). The investments will vary between EUR 1 million and EUR 10 million. The Tesi programme covers limited liability companies and public limited companies.

The aim is to prevent viable businesses going bankrupt as a consequence of a highly exceptional crisis that has had nothing to do with their operations. Tesi’s stabilisation programme will invest in businesses that are in a good position to overcome the financial difficulties caused by the coronavirus epidemic but require additional funding. This programme to deal with the liquidity problems faced by businesses complements the follow-on funding that Tesi announced earlier.

Investments to be made from this temporary programme offer a faster track to helping businesses cope with their liquidity crisis. Applications for this stabilisation funding will be taken on the Tesi website from Tuesday 14 April 2020. At the same time Tesi will also publish further details about the programme and the funding application process.

More information on Tesi's website (in Finnish)

Flexibility over pension insurance contributions and lay-offs

Payment of pension insurance contributions is postponed by three months. The Government is also proposing that employers’ pension insurance contributions be reduced temporarily by 2.6 percentage points in 2020.

To help businesses adapt to the current conditions, the notification period required before lay-offs can be made is temporarily shortened, and so too is the duration of the statutory codetermination procedure (cooperation negotiations). These legislative amendments are in force from 1 April to 30 June 2020. The employer must notify the affected employees of a lay-off no later than five days before the lay-off begins. The previous time limit was 14 days. The duration of the codetermination procedure regarding lay-offs is shortened to five days from the current requirement of six weeks or 14 days.

In addition, employers may now lay off employees who are on a fixed-term contract under the same conditions as laying off employees with open-ended contracts. It is also now possible for an employer to terminate an employee’s contract on financial or production-related grounds during the person’s trial period. The obligation to re-employ an employee if the work situation picks up is extended, however: the employer is obligated, for a period of nine months, to re-employ those employees who were dismissed for financial or production-related reasons between 1 April and 30 June.

More information: 

Press release of the Ministry of Economic Affairs and Employment 31 March 2020: Notice period for lay-offs and the duration of co-operation negotiations will be temporarily shortened
Varma: Information on coronavirus situation (in Finnish)
Ilmarinen: Questions and answers (in Finnish)
Elo: Elo customers are granted flexibility for the payment of their insurance contributions if needed
Veritas: Coronavirus: Frequently asked questions

Supporting businesses in their tax affairs

Entrepreneurs and self-employed persons  and businesses in general, and their accountants too, may encounter difficulties in managing tax affairs as a result of the coronavirus situation. In cases of illness, for example, you can ask the Tax Administration for extra time to file your business’s tax return, and the charge for a late VAT return can be waived if there are justified special reasons for doing so.

If your business is in financial difficulty, you can request a rearrangement of your tax payments under new, more suitable terms. Note that you can also apply for changes to your tax prepayments in the Tax Administration’s ‘MyTax’ service if it looks like your business’s performance will fall short of the estimates made earlier.

More information and services on the Tax Administration's website 

Obtain finance

First contact your bank or finance provider

If your business is temporarily in financial difficulty, you should take early action by first contacting your bank or other business finance provider.

The banks have already announced they are ready to consider loan repayment holidays and payment rescheduling due to the exceptional situation caused by the coronavirus epidemic. The Government is also taking action to improve the ability of banks to provide business financing.

Obtain guarantees from Finnvera

Finnvera can guarantee financing for large corporations, too. A guarantee can cover up to 80 per cent of loans, and total liabilities can be EUR 30 million, provided that Finnvera would not be the main finance provider. Major projects are considered on a case-by-case basis. 

All types of companies are eligible for Finnvera's financing. Associations and non-profit foundations are not eligible, however. The guarantees are not a form of direct financial support. Finnvera charges a fee for its guarantees, and it uses these fees to cover its share of the credit losses that can occur when guarantees are given as security for loans. Guarantees of up to EUR 1 million are granted mainly without any security requirements. The fee charged depends on, for example, the loan period and the risk classification, which is based on the applicant company’s financial statements data. The charges made must also comply with EU regulations and the rules on government support. Finnvera is not permitted to compete with banks over financing charges.

More information on Finnvera’s website 

Flexibility over pension insurance contributions and lay-offs

Payment of pension insurance contributions is postponed by three months. The Government is also proposing that employers’ pension insurance contributions be reduced temporarily by 2.6 percentage points in 2020.

To help businesses adapt to the current conditions, the notification period required before lay-offs can be made is temporarily shortened, and so too is the duration of the statutory codetermination procedure (cooperation negotiations). These legislative amendments are in force from 1 April to 30 June 2020. The employer must notify the affected employees of a lay-off no later than five days before the lay-off begins. The previous time limit was 14 days. The duration of the codetermination procedure regarding lay-offs is shortened to five days from the current requirement of six weeks or 14 days.

In addition, employers may now lay off employees who are on a fixed-term contract under the same conditions as laying off employees with open-ended contracts. It is also now possible for an employer to terminate an employee’s contract on financial or production-related grounds during the person’s trial period. The obligation to re-employ an employee if the work situation picks up is extended, however: the employer is obligated, for a period of nine months, to re-employ those employees who were dismissed for financial or production-related reasons between 1 April and 30 June.

More information: 

Press release of the Ministry of Economic Affairs and Employment 31 March 2020: Notice period for lay-offs and the duration of co-operation negotiations will be temporarily shortened
Varma: Information on coronavirus situation (in Finnish)
Ilmarinen: Questions and answers (in Finnish)
Elo: Elo customers are granted flexibility for the payment of their insurance contributions if needed
Veritas: Coronavirus: Frequently asked questions

Supporting businesses in their tax affairs

Self-employed people and businesses in general, and their accountants too, may encounter difficulties in managing tax affairs as a result of the coronavirus situation. In cases of illness, for example, you can ask the Tax Administration for extra time to file your business’s tax return, and the charge for a late VAT return can be waived if there are justified special reasons for doing so.

If your business is in financial difficulty, you can request a rearrangement of your tax payments under new, more suitable terms. Note that you can also apply for changes to your tax prepayments in the Tax Administration’s ‘MyTax’ service if it looks like your business’s performance will fall short of the estimates made earlier.

More information and services on the Tax Administration's website 

Businesses in the food and beverage service sector can receive support for job retention and the re-employment of employees once their activities resume, along with compensation for the restrictions on their activities due to COVID-19. The support and compensation will be granted by the KEHA Centre, which provides development and administrative services for the Centres for Economic Development, Transport and the Environment (ELY Centres) and the Employment and Economic Development Offices (TE Offices).

More information:

Press release by the Ministry of Economic Affairs and Employment 9 June 2020: Many food and beverage service sector businesses will receive compensation for restrictions on activities without an application – businesses can apply for job retention and re-employment support as of 5 June

Questions and answers on support and compensation for the food and beverage sector

Instructions for businesses on the KEHA Centre website

Temporary support for rural enterprises and agriculture for financial difficulties caused by the coronavirus pandemic

Temporary support for rural enterprises and agriculture helps companies whose financial situation has deteriorated due to market and production disruptions caused by the coronavirus pandemic. This form of support is intended to help companies adapt to the emergency conditions caused by the COVID-19 crisis and to continue profitable operations, and to secure jobs in the transition towards normal conditions.

More information on how to apply for support on the Finnish Food Authority website (in Finnish)