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Closure compensation

The application round for closure compensation has ended.
Average processing time
14 days
  • The closure compensation is intended as compensation for companies, whose business has suffered as a result of the closure orders related to the management of the coronavirus pandemic, as well as for the prohibition or significant restriction of public events. The compensation applies to the closures and prohibitions on organising public events imposed for the period 21 December 2021 to 28 February 2022.

    The webinar on closure compensation was held on March 23rd. The webinar is in Finnish.

    Link to the webinar

  • What is it about?

    The closure compensation compensates for costs for companies whose premises have been closed or opening hours restricted on the basis of an act or official order related to the management of the pandemic. The closure compensation is intended for companies that meet the following conditions:

    1. The company’s premises have been ordered to close, the opening hours of the premises have been restricted or public events organised by the company have had to be cancelled on the basis of an act or regulation related to the management of the pandemic.
    2. The order was directed at the company between 21 December 2021 and 28 February 2022.
    3. It was not possible to deviate from the order with a COVID certificate.

    Closed companies may also apply for cost support, provided that the conditions for the support are met.

  • Who is the closure compensation intended for?

    The closure compensation is intended for companies that were ordered to close:

    1. Completely: The company’s premises were completely closed according to Section 58g of the Communicable Diseases Act. By regionally targeted decisions, the municipality or the Regional State Administrative Agency has ordered the closure of sports facilities and gyms, public saunas, spas and swimming pools, dance venues, choral singing and amateur theater spaces, amusement parks and theme parks, indoor playgrounds and venues, as well as public lounges in shopping centers.
    2. In part: Restaurants and food and beverage serving facilities which, due to restrictions, have not been able to carry on their business. The closed part is considered to be the part of the day when the restaurant had to be kept completely closed to customers, e.g. dinner restaurants and nightclubs. If the company had takeaway sales after 6 p.m., sales in the closed business share are taken into account.
    3. For organisers of public events: The closing order has resulted in the cancellation of the public event, or it has limited the number of audience to such a small size that it was not possible to organize the event.

    If the company’s premises have been closed or their opening hours are restricted, the company may apply for closure compensation for the days covered by the order. Check the closing periods in accordance with official regulations.(linkki välilehdelle)

    Closure compensation may be granted for cancelled events if the company is the main organiser of the event and it is a public event for at least 50 people. The company may receive compensation if the event is completely prohibited or restricted in a way that has made it impossible to arrange. Closure compensation cannot be granted for a postponed event.

    In addition to companies, foundations and associations can apply for compensation if they have business activities. The legal form of the companies is not limited. However, the company must have a Business ID.

     

     

  • Closure compensation for closed premises

    A company may be granted closure compensation if its premises have been ordered to close on the basis of an act or an official order related to the management of the pandemic between 21 December 2021 and 28 February 2022. Closure compensation may also be granted if the opening hours of the premises are significantly limited.

    The share of the business subject to the closure order is determined on the basis of the data for November 2021.

    A company may be granted closure compensation if its premises have been ordered to close on the basis of an act or an official order related to the management of the pandemic between 21 December 2021 and 28 February 2022. Closure compensation may also be granted if the opening hours of the premises are significantly limited.

    The share of the business subject to the closure order is determined on the basis of the data for November 2021.

  • Closure compensation for restricted opening hours

    Closure compensation may be granted if the opening hours of the premises have been significantly restricted on the basis of an act or official order related to the management of the pandemic.

    For example, restaurants that have not been able to carry on their business due to restrictions may apply for closure compensation. The closed part of the day is when the restaurant had to be kept completely closed to customers, e.g. in the case of dinner restaurants and nightclubs. If the company had takeaway sales after 6 p.m., sales in the closed business share are taken into account.

     

  • Closure compensation for cancelled events

    A company may receive closure compensation for a cancelled event if the event meets the following conditions:

    1. The company is the main organiser of the event.
    2. The event is an open public event, and not for example an in-house event.
    3. The planned audience for the event is at least 50 people.
    4. The planned date of the event was 21 December 2021–28 February 2022.
    5. Public events are prohibited on the basis of an act or authority order related to the management of the pandemic, or the event has been restricted in a way that has made it impossible to organise.
    6. It has not been possible to deviate from the order or restriction with a COVID certificate.
    7. The event has not been moved to another time.
    8. Events are also subject to closure compensation if they are part of the company’s basic business, such as cinema screenings and serial sporting events.

    The closure compensation will reimburse the event’s main organiser for expenses related to the planning and organisation of the event incurred between 1 October 2021 and 28 February 2022.

    The closure compensation cannot be granted if it would have been possible to deviate from the order or restriction with a COVID certificate.

  • When to apply for support?

    The application round for closure compensation begins on 22 March 2022 at 9 am. The application round ends on 20 April 2022 at 4:15 pm.

  • How to apply for closure compensation?

    You can apply for closure compensation with an electronic application. The application will be opened on State Treasury’s webpage on 22 March at 9 am.

  • What are the conditions for receiving compensation?

    You can apply for a closure compensation if:

    • the company’s premises are completely or partially closed, or the organisation of a public event is prohibited on the basis of Section 58g of the Communicable Diseases Act
    • the company has a Business ID

    The form of company is not relevant.

     

  • Obstacles to receiving closure compensation

    Voluntary closure of business premises is not sufficient to receiving closure compensation. It is also conditional on the fact that it was not possible to deviate from the restriction by requiring customers to issue an EU digital coronavirus certificate (coronavirus passport) as referred to in Section 58i of the Communicable Diseases Act.

    The maximum amount of closure compensation is EUR 2.3 million. If the support ceiling has been exceeded, no compensation may be granted.

    According to the law, closure compensation is also not granted in the following situations:

      • The company is a theater, orchestra or national art institution that is covered by central government transfers or state subsidies.
      • The company operates in the arts sector and receives grants from the Arts Promotion Centre Finland.
      • The company is a credit or financial institution, or its main activity is primary production, fisheries or aquaculture.
      • The company is not registered in the Prepayment register.
      • The company has neglected to fulfill the reporting obligation concerning taxation.
      • The company has tax debt information in the Tax debt register.
      • The company has been declared bankrupt, or it has a case concerning a declaration of bankruptcy pending in a court of law.
      • A small or micro-sized company was in difficulty before the coronavirus pandemic (31 December 2019) and is undergoing company reorganization or has been granted rescue or restructuring aid.
      • A medium-sized or large company was in difficulty before the coronavirus pandemic (31 December 2019).

    The company was in difficulty before the coronavirus pandemic (31 December 2019). Exception: However, this does not apply to small and micro-enterprises that have been in difficulty before 1 January 2020. They may also be granted aid if, at the time the aid was granted, the company is not in bankruptcy or reorganisation proceedings and has not received rescue aid or restructuring aid.

    Definition of a company in difficulty in the EU Regulation:

    A company in difficulty refers to a company in accordance with Article 2(18) of the General Block Exemption Regulation of the EU. According to the definition, a company is in difficulty,

    a. if more than half of its share capital has disappeared as a result of accumulated losses (limited liability companies),
    b. more than half of its capital as shown in the company accounts has disappeared as a result of accumulated losses (companies where at least some members have unlimited liability for the debt of the company),
    c. the company is subject to collective insolvency proceedings,
    d. the company has received rescue aid and has not yet reimbursed the loan or terminated the guarantee, or has received restructuring aid and is still subject to a restructuring plan,
    e. the company is not an SME, and for the past two years, its book debt to equity ratio has been greater than 7.5 and its EBITDA interest coverage ratio has been below 1.0.

    Only section c applies to SMEs that were under 3 years of age on 31 December 2019.

  • How much compensation can you get?

    The amount of the closure compensation is based on how much the company’s expenses have been in January-February 2022 and how much of the business has been closed.

    The company’s wage expenses are taken into account, multiplied by the share of the closed business. Other expenses are taken into account multiplied by the share of the closed business and multiplied by figure 0.7.

    The total amount of payroll and other expenses is divided by the number of calendar days in the comparison period (59) and multiplied by the number of calendar days of the closing period.

    Any aid granted by the Ministry of Education and Culture (OKM)  and insurance compensation for the same costs are deducted from the compensation.

    If the amount of compensation after deductions is less than €2,000, no compensation will be paid.

    The closure compensation does not compensate for business losses.

     

  • Examples illustrating the calculation of closure compensation

    Example 1

    The company has one business site that has been completely closed by decision of the Regional State Administrative Agency (based on Section 58g of the Communicable Diseases Act) between 15 January and 15 February 2022, so that the company has no business at all during the closure. As the business has been closed in its entirety on the basis of the closure order, the company will be compensated for the amount of fixed costs for January-February 2022 by 70 %, and the amount corresponding to the wages for January-February by 100 %, adjusted to the length of the closure. In January-February 2022, the company had fixed costs of EUR 2,500 and wage costs of EUR 5,000. Of these, EUR 2,500*0.7+5000=6750€ are taken into account. This amount is divided by the number of days in January-February, 59, in order to obtain the daily amount according to the January-February data. This is multiplied by the number of days of the closing period (15.1.-15.2.2022), 32 days: 6750/59*32=3661.01 €. The compensation amount is EUR 3,661.01.

     

  • How do other granted supports affect?

    The closure compensation can be applied for even if the company has already received other direct supports to mitigate the consequences of the coronavirus pandemic. However, the maximum compensation per company provided by the EU, EUR 2.3 million, must not be exceeded. The maximum amount of support is calculated considering all support granted under the EU framework support programme, and received by an individual company or corporate group.

    The following supports are part of the EU Framework Support Programme of EUR 2.3 million:

    • Business cost support (State Treasury)
    • Closure compensation (not closure compensation for medium-sized or large companies) (State Treasury)
    • Event guarantee (State Treasury)
    • Support for cultural events cancelled or organised smaller due to the coronavirus pandemic, as well as support for interrupted competition series at the top division level of sport and sports federations organizing series (Ministry of Education and Culture OKM).
    • Coronavirus support for cultural heritage communities, coronavirus support for cultural communities and coronavirus grant for arts and culture festivals (Ministry of Education and Culture OKM)
    • Support for re-employment in the restaurant sector (KEHA Centre)
    • Government grant for promoting journalistic content (Traficom)
    • Temporary RDI loan during a business disruption, if the loan has been granted in accordance with the framework support programme and not in accordance with the Block Exemption Regulation (Business Finland)
    • Temporary extended ELA by the Åland Provincial Government (tillfälligt utökat likviditetsstöd)
    • Development grant granted by the ELY Centres where, exceptionally, the aid has been granted under the framework support programme and not as de minimis aid.

     

  • Please note that the result given by the calculator is an estimate, not a compensation decision. The compensation must be applied for via the e-service, and the amount of support granted may differ from the result of the calculator.

    The amount of compensation may be affected, for example, by compensation received elsewhere which is not taken into account in the calculator.

    Closure compensation calculator

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  • Do the following before applying

    • The application can be made by a person with the right to sign that the company entered in the trade register/register of associations, or another person who has received a Suomi.fi authorization. Check that your authorization to represent your company appears in the Suomi.fi authorization register. If not, check that the signatories are correct in the Patent and Registration Office’s register. Closure compensation is applied for with the authorization “Yritysrahoituksen hakeminen”. Suomi.fi authorizations >
    • To apply for compensation, the applicant must have a business ID. For more information, see: Business Information System >
    • The closure compensation can only be paid to the bank account that the company has reported to the Tax Administration. Check the account number you have entered and, if necessary, enter a new number on your My Tax page >
  • The authority to sign and Suomi.fi e-Authorizations

    Filling in the application as an authorized signatory

    Applications for closure compensation may be submitted by a person who has the right to sign on behalf of the company. In addition, the application can be filled in by a person who has a role entered in the Trade Register, the Business Information System or the Register of Associations that entitles the person to represent the company. The roles entered in the Trade Register that entitle a person to represent a company are:
    • Managing Director
    • Substitute Managing Director
    • Self-employed person
    • Property Manager
    • Head Property Manager
    The roles marked in the Register of Associations that entitle a person to represent an association are:
    • Other authorized signatory who is marked on the register as having the right to represent the association alone

    Granting a mandate for a company representative

    A company may also authorize another individual to represent the company via the Suomi.fi e-Authorizations service. Select the mandate ‘Application for corporate financing’.

    You can authorize the following people to represent a company:
    • a private entrepreneur, on behalf for their own business
    • the company’s managing director or substitute managing director
    • an authorized signatory who is marked in the Trade Register as having the right to represent the company alone
    • all the members of the company board marked in the Trade Register, acting together
    • either the chairperson and a board member or two board members who have been entered into the Trade Register in accordance with the rules of representation
    • an individual who the company has given either the right to grant a mandate or the representative’s right to grant a mandate.
    The following persons may authorize on behalf of a registered association:
    • the association’s chairman, board member or other authorized signatory who is marked in the Register of Associations as having the right to represent the association alone
    • an individual which the association has given either the right to grant a mandate or the representative’s right to grant a mandate.

    The customer service of the Digital and Population Data Services Agency is available to assist companies in the use of Suomi.fi mandates.
    You can contact us on: +358 295 53 5115

    Note. Representative of the association or foundation: if you have any problems with Suomi.fi authorization, please contact the closure compensation customer service sulkemiskorvaus@valtiokonttori.fi

  • Associations and foundations

    The chairman of the association, who is entered as a chairman in the Finnish Register of Associations, may fill in the application for closure compensation on behalf of the association in e-service. In addition to the application, an association must send evidence via a supplementary information notice that the chairman has the right to sign for association alone or is authorized by the signatories to send the application (association register / rules / minutes / power of attorney).

    In the case of foundations, the application should be sent as a paper application if the authorization rights are not already defined.

    If necessary, you can order a printable application in PDF format from paperihakemus.sulkemiskorvaus(at)valtiokonttori.fi. The application form arrives as a return message.
  • What information do you need to apply for compensation?

    The application must be filled in with the company’s basic data, the wage expenses for January-February 2022 and the wage expenses for the business name entrepreneur, the inflexible expenses for January-February 2022, as well as the data on the business name entrepreneur’s YEL annual income and YEL contributions. In addition, information on aid under the EU framework support programme related to the coronavirus pandemic must be provided.

    In addition, the company must indicate how much of the business is affected by the closure. In order to determine the share of the business, revenue data for November 2021 are required.

    The State Treasury receives some of the necessary information from the Tax Administration, the Incomes Register, Statistics Finland and other authorities that have granted state aid.

    The State Treasury strives to make applying as effortless as possible. The application has been tested with the customer panel and has received positive feedback.

  • Video instructions

    Video instructions will be updated here.

  • Submitting a claim for rectification

    The current processing time for second application round correction claims is about 3-4 months.

    If you are dissatisfied with the decision you have received, you can request a rectification from the State Treasury. Processing a claim for rectification at the State Treasury is free of charge.

    Before submitting a claim for rectification

    • Read the closure compensation decision carefully before submitting a claim for rectification. Check all the information used to justify the decision and any reasons for rejecting the decision.
    • Please note that in order to be granted closure compensation, the company must fulfill all the general conditions
    • In the claim for rectification, it is advisable to comment on all possible rejections, in order for the claim for rectification to be successful.
    • If you have general feedback or questions about the decision you have received, you can contact customer service by calling 0295 550 3530.
    • Contact for example an accounting firm to obtain all the necessary documents.

    How is the claim for rectification made?

    • The claim for rectification is made in the e-service.
    • After logging in to the e-service, you can automatically see all the applications you have submitted earlier. Select the issue for which you are applying for a rectification.
    • The claim for rectification can also be submitted to the State Treasury in person, using an agent, by post, or by e-mail.
    • The sender is responsible for the submission of the claim for rectification.

    What information should be contained in the claim for rectification?

    • The claim for rectification should indicate the adjustment required for the decision.
    • Also tell us on what grounds the rectification is required.
    • The claim for rectification must also include the documents mentioned in the claim.
    • If the claim for rectification is made otherwise than by using the State Treasury’s e-service, enter the application number in the claim, for which you are applying for rectification. The application number can be found in the upper corner of the cost support
    • If the lawyer or public legal counsel does not act as an assistant, and the application is not made in the State Treasury’s e-service, the proxy of the agent must also be attached to the claim for rectification

    When do I have to make a claim for rectification?

    • The claim for rectification and its attachments must be submitted to the State Treasury by 4:15 p.m. within 30 days of the date on which you received the decision.
    • If the decision has been submitted electronically, service is deemed to have taken place on the third (3rd) day following the sending of the message, unless otherwise shown.
    • If the decision was sent by letter, the service is deemed to have taken place on the seventh (7th) day from the date of mailing, unless otherwise shown.
    • Only claims received within the time limit are examined.

    Processing of the claim for rectification

    • The State Treasury processes the rectification claims in the order in which they are received, and the estimated processing time is approximately 4-5 months.
    • Claims for rectification are processed individually, which is why the duration of the processing varies.
    • You can supplement the claim for rectification by submitting additional information in the e-service. Submitting relevant attachments/supporting documents without delay will help the processing of your case.
    • If necessary, the rectification claim handler will ask you for additional information, either by email or by phone. Please monitor your email regularly. From time to time, check the junk e-mail folder.
    • Please note that providing all necessary additional information without delay will contribute to the processing of your case.

    Appeal to the Administrative Court

    • If you consider the decision issued by the State Treasury to appeal against the claim for rectification to be unlawful, you can appeal the decision to the Administrative Court.
    • The decision can only be appealed to the Administrative Court after the claim for rectification has been processed by the State Treasury.