According to recent data from Dun & Bradstreet, the number of bankruptcies in the one of the strongest European economy Norway, is rising and more businesses are being forced to shut down.

Many companies were artificially kept alive during the corona epidemic as a consequence of the compensation plans. In hindsight, among other things, we observed a rise in bankruptcies until 2022, which must be considered a return to normal. But what we have seen so far this year is more unsettling. –Rune Aale-Hansen, CEO of Regnskap Norge

The cause is complicated, but it is clear that rising power prices, price rises, and ongoing delays in the payment of interest on late payments from compensation programmes are significant concerns. In addition, we observe rising interest rates, a weakening krone currency rate, and rising tax expenses.

For businesses, the national budget for 2023 presents a challenge. An example of increased financial and administrative constraints for company is raising employer’s tax by 5% beyond NOK 750,000, independent of the business’s profitability and without considering the administrative repercussions. Tax expenses have also significantly grown as a result of higher wealth and dividend taxes. 

Regnskap Norge worries that the rise might lead to the closure of small and medium-sized businesses and the loss of employment. More than ever, it’s crucial to lessen administrative hassles and avoid adding any expensive new reporting requirements for company. The sudden rise in bankruptcies demonstrates how crucial it is to support value creation, growth, and employment across the nation.

Source: Document.no