Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 37
Denmark
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Litigation
•
The Danish courts were closed down on 13 March 2020, but have re-opened again
from 27 April 2020. Accordingly, for pending cases this means that from 13 March
2020 until 27 April 2020, the courts have only heard cases within ‘critical areas of
practice’, as the employees of the courts have been sent home to the greatest extent
possible. Accordingly, hearings of cases in all non-critical areas of practice were
discontinued from 13 March until 27 April 2020. Each court has authority to decide
how the re-opening should take place as long as the guidelines issued by the Danish
government are adhered to.
•
For additional information about COVID-19 consequences for pending court and
arbitration cases, please view here.
Are the courts
operating?
Tax
Has any new
legislation been
introduced in light
of COVID-19?
The Danish government has within the tax area adopted several measures to help secure
small, medium and large companies’ liquidity. The measures include:
(i) postponement of the deadline for payment of VAT and specific taxes for the
months April, May and June. In addition, the Danish government has introduced
further postponements of deadlines of payment of specific taxes for small and
medium-sized businesses,
(ii) a temporary increase to DKK 100 billion of the amount that companies are
allowed to keep on a so-called “tax account” from 7 May 2020 up until 1 April 2021,
(iii) possibility for some companies to apply for an exemption to pay interest and
fees incurred for late payment of specific taxes in March 2020,
(iv) extension of deadline for submission of tax return for 2019 to the Danish Tax
Authorities to 1 September 2020. The deadline extension applies to everyone,
(v) possibility for small and medium-sized companies to obtain interest-free VAT
loans and possibility for certain professions to obtain payroll tax loans. Companies
can apply for the loan from 5 May 2020 to 15 June 2020,
(vi) companies that uses the business taxation scheme (in Danish:
virksomhedsordningen) and which have a deficit in the income year 2019 may apply
to receive payments of the tax value of the part of the deficit arising from research
and development expenses in June instead of November. In order to receive the
early payment, an application should have been submitted no later than 15 May
2020, and
(vii) for some businesses, the payment deadline for payroll tax for the second
quarter of 2020 is extended to 1 September 2020 and for the third quarter of 2020
the deadline is extended to 16 November 2020.
For additional information about the postponement of payment of VAT and specific taxes
for the months April, May and June, please view here.
For additional information about the exemption to pay interest and fees incurred for late
payment of specific taxes in March 2002 see (in Danish), view here.
For additional information about the extension of deadline for submission of tax return
for 2019 see (in Danish), view here.
Government measures in key jurisdictions
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