Government measures in key jurisdictions 3rd edition final - Flipbook - Page 46
Denmark
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 2020 to January, March and May 2021. 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 could apply for the loan from 5 May
2020 to 15 June 2020,
vi. companies that use 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.
The Danish Tax Administration has emphasized that some businesses must pay tax for the contributions
they received in relation to the compensation schemes. This applies for the following compensation
schemes:
- Compensation for loss of turnover (self-employed, freelancers, artists and cultural institutions),
- Compensation for cancelled events (event organizers),
- Compensation for expected fixed costs (i.e. rent),
- Salary compensation for employees,
- Compensation for freelancers with B-income, and
- Compensation for freelancers with mixed A- and B-income
For additional information about the postponement of payment of VAT and specific taxes, please view
here.
For additional information about the exemption to pay interest and fees incurred for late payment of
specific taxes in March 2020 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.
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Government measures in key jurisdictions