On 17 March 2020, the Government and a unanimous Danish Parliament (Folketinget) passed a bill aimed at supporting Danish trade and industry as well as Danish employees and reducing the pressure on the liquidity of Danish businesses.

Please note that a number deadlines have been changes, among other things. We have put this page together to help you find out what the initiatives of the aid package mean to your business.

Find the extended deadlines for your business

If you need further information, you may contact us on (+45) 72 22 12 39 Monday 9:00 - 17:00, Tuesday to Thursday 9:00 - 16:00 and Friday 9:00 - 14:00. Our chat is available Monday to Thursday 9:00 - 15:00 and Friday 9:00 - 13:00. This page (www.skat.dk/corona-aid) is updated continuously.

You can read more about what precautions you can take in your business at www.virksomhedsguiden.dk

Latest updates on aid packages

Date and timeAdded information about
29 May, 17:00
14 May, 14:00
30 April, 16:00
28  April 2020, 20:00 Updated information about Proposal on VAT loans for small and medium-sized businesses and payroll tax loans for certain industries
10 April 2020, 20:00 Proposal on VAT loan for small and medium-sized businesses and payroll tax loans for certain industries

The Danish Parliament has passed a bill enabling small and medium-sized businesses to apply for an interest-free VAT loan and certain industries to apply for payroll tax loan. The Act will enter into force on 5 May 2020, and businesses can apply for a loan from 5 May 2020 to 15 June 2020.

VAT loan: Small and medium-sized businesses can apply.

Payroll tax loan: Businesses settling payroll tax according to method 4, such as doctors, dentists, physiotherapists, self-employed taxi drivers and the cultural sector, can apply for a payroll tax loan. Read more about businesses covered by payroll tax and method 4.

Businesses applying must also meet the following requirements:

  • not be a public institution.
  • not be under bankruptcy or reorganisation proceedings, voluntary liquidation or compulsory winding-up.
  • not have one or more tax estimates which have not been replaced by a declaration. Read more below.
  • not have provided security or been ordered to provide security under section 11 of the Danish Tax Collection Act (Opkrævningsloven).
  • not have a natural or legal person who has been convicted of tax fraud within the past ten years, and who:
    • owns the business
    • runs the business in practice
    • is a member of the business’s board of directors or executive board
    • is a branch manager in the business
  • not changed 50% or more of the ownership during the period from 9 April up to and including 15 June 2020. It is, however, possible to apply if you enclose an auditor’s statement confirming the change of ownership.

Please note that if your business's taxes and duties have been based on an estimate within the past three years and your business has not replaced the estimate with a correct declaration during the settlement period, your business will not be eligible for the loan. If your business has an active estimate, you can replace it with a correct declaration and then apply for the loan.

How to replace an estimate with a correct declaration:

  1. Log on to your business tax account in E-tax for businesses  (TastSelv Erhverv).
  2. Click the menu item 'Kontoudtog' (Statement of account) and search for 'Gebyr FF' (Fee, estimate) to find the VAT and tax estimates for which you have been charged a fee. Search using the search function in your browser.
  3. When you have found the taxes based on an estimate, you can make a new declaration for the individual taxes and duties.
  4. You find the open periods for which no declarations have been made under the individual tabs in E-tax for businesses - such as 'Ansatte' (Employees), (for example, 'eIndkomst og A-skat' (E-income and E-tax), 'Moms' (VAT) or 'Lønsumsafgift' (Payroll tax).
  5. Replace the missing declaration(s). Read more about how to make a declaration under the individual taxes and duties.
  6. It may take up to four days until your new declaration is shown on your tax account. You should therefore wait four days before applying for a loan.

Businesses owing money to the state may apply for a loan. If a loan is granted, it will not be paid to the business, but used to cover the debt. In this way, the business will effectively obtain interest-free deferral of payment.

VAT: You can apply for an interest-free VAT loan equal to the VAT the business has declared for the fourth quarter 2019 (medium-sized businesses) or second half 2020.

Payroll tax:

  • Some businesses declare payroll tax quarterly. The may apply for a loan equal to the amount they declared in payroll tax for first quarter 2020.
  • All businesses paying payroll tax according to method 4, declare payroll tax on profit/loss for income year 2019 or for a staggered income year replacing income year 2019. You can apply for a loan equal to 25% of the payroll tax on the profit for income year 2019 or for the staggered income year.
  • If the business settles payroll tax quarterly and has declared a profit for income year 2019, it may apply for both loans (provided the other conditions have been met).

If the business has unpaid debts (such as unsettled payment of VAT or payroll tax), the amount borrowed will be offset against the debts. This means that the business will not receive the loan as such but will obtain a free credit period equivalent to that.

You can apply for the loan from 5 May 2020 to 15 June 2020 via www.virk.dk. You can either complete and submit the application yourself or have your business adviser do it. Read more about the application process at www.virk.dk.

Apply for interest-free loan (links in Danish)

Apply for VAT loan at www.virk.dk

Apply for payroll tax loan at www.virk.dk (on account)

Apply for payroll tax loan at www.virk.dk (method 4 - not personally owned business with employee)

Apply for payroll tax loan at www.virk.dk (method 4 - not personally owned business without employee)

Apply for payroll tax loan at www.virk.dk (method 4 - personlly owned business with employees)

Apply for payroll tax at www.virk.dk (method 4 - personally owned business without employees)

The expected application processing time is five banking days (unless there are circumstances in the business that cannot be checked). You will receive a reply in your business’s  Message archive in E-tax for businesses (TastSelv Erhverv).

If your business has been granted a loan, the loan will appear from your business tax account. 

If your business has not paid VAT, payroll tax or other taxes/duties, the loan will be used to to pay these. Then the loan will be offset against any other debt to the State. Any remaining amounts from the loan will be disbursed to your business NemKonto.

However, the loan can only be disbursed if you reduce your business's refund limit to a low amount, allowing for the remaining amounts from the loan to be disbursed to your business NemKonto automatically. 

You can log on to E-tax for businesses (TastSelv Erhverv) to change the refund limit on your tax account.

When transferring the loan to others (disbursement transfer)
The business may transfer part or all the loan to a third party. This is also referred to as disbursement transfer.

Read more in Danish about the guidelines for transferring a disbursement on the website of the Danish Tax Collection Agency at www.gaeldst.dk.

Due to the short deadline between application for the loan and disbursement of the loan, you should request a transfer via email at the same time, at the latest, as the date you apply for the  loan. Send your application with a description of what should be transferred (the loan) to Transporter@ADST.dk.

The transfer will take into account the order in which any debt to the State should be covered.

Redeclaration of negative amount before the loan is paid out
If, before the loan is paid out, your business makes a negative redeclaration (i.e. a declaration of a negative amount) of the declaration on which the loan is based, the amount will be offset against the loan before the remaining amount is paid out.

Redeclaration of negative amount after the loan is paid out
If, after the loan is paid out, your business makes a negative redeclaration (i.e. a declaration of a negative amount) of the declaration on which the loan is based, the amount will be offset against the loan before any payout of the remaining amount from the negative redeclaration.   

The business must repay the loan via its tax account no later than 1 April 2021.

If the loan is not repaid on time, the business will end up owing money to the State plus added interest. If the business’s total debt exceeds DKK 5,000, a payment reminder will be issued. Continued failure to pay will result in the debt being referred for collection.

If during the loan period the business no longer meets the loan requirements, the loan must be repaid immediately after the business no longer meets the requirements. This may be the case if the business is under compulsory winding-up or its taxes and duties are based on an estimate. If the business closes, the loan must be repaid two weeks after the business’s registration ends.

Companies and personally owned businesses that use the business tax scheme and made a loss in income year 2019 may apply for an early payment of the tax value of that portion of their loss resulting from research and development expenses (also called the tax credit scheme). Bringing forward the date means that the tax credit will be paid in June instead of November.

The application deadline for early payment was 15 May 2020.

See guide on the tax credit scheme (in Danish)

  • The payment deadline of 14 April has not been extended
  • The payment deadline of 11 May has been extended to 10 September 2020
  • The payment deadline of 10 June has been extended to 12 October 2020
  • The payment deadline of 10 July has been extended to 10 November 2020

The declaration deadlines have not been changed.

You can see all the declaration and payment deadlines for A-tax and labour market contributions here.

  • The payment deadline of 31 March has not been extended
  • The payment deadline of 30 April is extended to 31 August 2020
  • The payment deadline of 29 May is extended to 30 September 2020
  • The payment deadline of 30 June is extended to 30 October 2020

The declaration deadlines have not been changed.

You can see all the declaration and payment deadlines for A-tax and labour market contributions here.

If you receive a reminder of one of the original deadlines, please disregard it. 

The Danish Tax Agency may exempt businesses from paying interest and fees if the non-payment is due “sudden events beyond their control, which could not have been foreseen, and if the businesses make the payment immediately after the cause of non-compliance has been removed". We are of the opinion that the corona situation can be characterised as “sudden events beyond their control, which could not have been foreseen".

Please find below a list of examples of businesses that can apply for exemption from payment of interest and fees on A-tax and labour market contributions.

Examples of businesses ordered to close
Businesses that have been ordered to close temporarily as a result of the corona situation can apply for exemption from payment of interest and fees on A-tax and labour market contributions for March 2020. Businesses should note that payment must be made immediately after the cause of non-compliance has been removed, i.e. after the corona situation is over, and that they cannot apply for exemption until they have paid the A-tax and labour market contributions due for March.

The following businesses have been ordered to close temporarily: 

  • Restaurants, bars, etc. where food, drinks or tobacco are served to be consumed at the premises.
  • Shopping centres, department stores, shopping archades and bazaars.
  • Places offering sports and recreational activities, including amusement archades, play centres, aqua parks, public swimming pools, gyms and cinemas.
  • Tatoo, piercing, spa, personal care, beauty and massage salons, hair dressers and other facilities offering services where physical contact with the customer is required, and sun tanning salons.

This means that hairdressers, for example, that have been ordered to close as a result of the restrictions pay apply for exemption form payment of interest and fees if the business generally meet the conditions on payment immediately after the cause of non-compliance has been removed.

Examples of businesses that are still allowed to stay open
Businesses that have not been ordered to close, but due to the corona situation have found it necessary to close because of lack of customers, or that due lack of customers because of the corona virus  have suffered a considerably decrease in revenue, may apply for exemption from payment of interest and fees on A-tax and labour market contributions for March 2020. Businesses should note that payment must be made immediately after the cause of non-compliance has been removed, i.e. after the corona situation is over, and that they cannot apply for exemption until they have paid the A-tax and labour market contributions due for March. We will make a specific assessment of whether your business has suffered a considerable decrease in revenue before we approve your application.

The following businesses are still allowed to stay open:

  • Grocery shops, pharmacies and specialised shops with medical equipment.
  • Restaurants etc. selling take-away food.
  • Places offering sports and recreational activities, if such places are used for necessary rehabilitation of people. These places may stay open to these people.
  • Shops selling goods at reduced prices and which are not located in shopping centres, department stores, shopping archades and bazaars.

This means that restaurants, for example, that have been ordered to stop serving food to be consumed at their premises, but that are now open and sell take-away food, but fail to do so because of the corona situation, may apply for exemption if they pay their A-taxes and labour market immediately after the cause of non-compliance has been removed.

This also means that a clothing shop, for example, that is still allowed to stay open, but due to lack of customers has chosen to stay closed, may apply for exemption if it pays its A-tax and labour market contributions immediately after the cause of non-compliance has been removed.

You can not apply until the corona situation is normalised and when the due A-tax and labour market contributions for March are actually paid. Please send your application to us by completing the contact form in E-tax (Tastselv).

At the moment it is not possible to say when the corona situation is over and when the cause of non-compliance regarding payment of A-tax and labour market contributions for March 2020 has been removed. This depends on several factors that are still unknown and to what extent Denmark could open up again. When we have a clearer picture of this, we will send out application details for exemption from payment of interest and fees on A-tax and labour market contributions.    

If you do not pay your business A-tax on 31 March 2020 (for large businesses) or on 14 April 2020 (for small and medium-sized businesses), but subsequently pay an amount to your tax account in May to cover excise duties, for example, this payment will be used to cover the unpaid A-tax first. Any excess amount will then be used to cover excise duties. So, the oldest entry is covered first, see the Danish Tax Collection Act (Opkrævningsloven).

Read more about payments to your tax account

If I am entitled to a refund
If you are entitled to a refund of negative VAT, for example, and there is no unpaid debt on your tax account, the credit balance will be used to cover any debt that has been transferred for collection with the Danish Debt Collection Agency (Gældsstyrelsen). Any remaining credit balance will then be transferred to your business NemKonto.

How does the Tax Agency ensure that I do not have to pay interest and fees?
When you have applied for exemption from payment of interest, the individual payments will be identified through a manual review. This ensures that no interest is charged on the unpaid A-tax and /or labour market contributions, or that any interest already charged may be written down.

As a personally owned business, you do not have to pay B-tax in April or May. The payment deadlines are extended to two months which are today instalment-free months:

  • The payment deadline of 20 April has been extended to 22 June 2020
  • The payment deadline of 20 May has been extended to 21 December 2020

If you pay via your B-tax instalments via direct debit, Betalingsservice, you do not have to do anything further, as they are automatically deferred to the extended deadlines. If you pay via online banking, you just have to pay by the extended deadlines. 

What to do if I receive an automatic reminder of one of the original deadlines?
If you receive a reminder of one of the original deadlines, please disregard it.  

 

 

 

If you pay B-tax and the profit from your business has suddenly decreased, you can already now correct your profit in your preliminary income assessment in E-tax (TastSelv).

In this way, you reduce your B-tax instalments, making the instalments lower and possibly lapse. You will  automatically receive new giro transfer forms or payment lines in E-tax for the remaining months of the year.

 

Log on to E-tax for individuals (TastSelv Borger)
Correct your business profit in field 221 in your preliminary income assessment for 2020

Remember to increase the profit when the situation changes
To avoid having to pay outstanding tax, it is important that you remember to correct the profit again when the situation changes. So, when the situation changes and you start earning a profit, you must increase the profit again and you will then receive new B-tax instalments.

We are aware that this is a very special situation. We consequently take this into account in our inspection and audit policy. However, we are keeping an eye on whether businesses remember to increase their profits when the situation normalises. You must increase the profit again in E-tax (TastSelv) when your situation changes.

On 17 March, the Danish Tax Agency sent a letter to 140,000 personally owned businesses which were to pay the next B-tax instalment on 20 March 2020. The letter informed the business owners that they could make a downward adjustment of the profit for the year in their preliminary income assessment in E-tax (TastSelv) if they found that there would be no profit for the year or that it would decrease significantly. For some businesses, this could mean that the B-tax instalment payable on 20 March would lapse.

If you changed your profit in your preliminary income assessment no later than 18 March 2020 at 16:00, and your B-tax instalment for March decreased or lapsed , the B-tax instalment for March would not be paid via Betalingsservice.

If you were to pay a smaller amount, you have received a giro transfer form, which you must pay. Payment of any B-taxes for the rest of the year will instead be debited automatically in accordance with the extended deadlines via Betalingsservice.

If you changed your preliminary income assessment later than at 16:00 on 18 March 2020, the change would not have effect. The original B-tax instalment for March 2020 would therefore generally be debited to your account.

If you paid too much, the excess amount will be refunded to you in April unless you have arrears against which we will offset the amount first.

The tax return filing deadline for businesses and companies has been extended for income year 2019.

The deadline has been extended to give accountants more time to help businesses meet the filing deadline. What this means to you depends on whether you have a business or a company.

Both businesses and companies are covered by the extended filing deadline:

  • Personally owned businesses, including sole proprietorships, personally owned small businesses (PMV) and partnerships (I/S)
  • Companies, foundations, associations, etc., including entrepreneurial companies (IVS), private limited company (ApS) and public limited companies (A/S).
  • For personally owned businesses the deadline has been extended to 1 September 2020. The usual deadline is 1 July 2020.
  • For companies with a tax return filing deadline of 31 March 2020 and later for income year 2019, the deadline has been extended to 1 September 2020.
Other extended deadlines on the tax return
SubjectOriginal deadlineNew extended deadline
Business tax scheme (virksomhedsordningen): Possibility of changing choice of business tax scheme for income year 2018  
Read more about the business tax scheme (in Danish)
30 June 2020 1 September 2020
Company termination pension scheme with tax relief 30 June 2020 1 September 2020
Pension scheme contributions for 2020 1 August 2020 1 October 2020
Spouse’s business: Choice of co-working spouse status or not in the business 30 June 2020 1 September 2020
Investment institution with minimum taxation: information about minimum income No later than six months after end of the income year 2019 Extended to max nine months after end of the income year 2019
Gift forms to be submitted by foundations and associations 31 May 2020 1 September 2020
The estate of a deceased person must be notified if there will be outstanding tax for the year before the person died. The tax claim must be submitted no later than three months after the tax return filing deadline for the income year before the year the person died.  
Read more about tax on death (in Danish)
1 May 2020 / 1 July 2020 1 December 2020

The deadline for voluntary payment of outstanding tax has not been extended. Read more about payment of outstanding tax.

If you have a personally owned business, there are advantages and disadvantes of deferring the filing deadline to 1 September.

  • If you file your tax return before the deadline and you are entitled to a tax refund, you will get your refund sooner.
  • If you owe tax and pay the outstanding amount before 1 July 2020, 2% interest will be charged up to and including the payment date. If you pay after 1 July 2020, you must pay an additional interest charge of 4%.
  • If you owe tax of up to DKK 21,320, including additional interest charges, the amount outstanding will be included in your tax for 2021 - unless you pay the total amount no later than 1 September 2020.
  • If you owe more than DKK 21,320, including additional interest charges, any outstanding tax in excess of this limit is payable in three instalments in October, November and December - unless you pay the total amount no later than 1 September 2020.

For companies it does not matter whether you file your tax returns before the original deadline or wait until the extended deadline.

For other information subject to the tax return filing deadline, the deadline is extended to 1 September 2020. The same applies to TP documentation, for example, which must be prepared regularly and be available no later than the date of the filing deadline, and to requests for refunds under the tax creditor scheme.

If you receive a reminder of one of the original deadlines, please disregard it. 

For small and medium-sized businesses, the VAT periods for the first and second quarters and for the first and second halves of the year are combined.

This extends the payment deadline for:

  • medium-sized businesses by three months for the first quarter of 2020
  • small businesses by six months for the first half of 2020

The periods are combined, so that you pay VAT in continuation of the VAT return for the second period. However, VAT returns can still be filed at the original deadlines and with, for example, refund of negative VAT.

The deadlines for reporting EU sales exclusive of VAT have not been extended. The same goes for the VAT One Stop Shop filing deadlines. Please be aware of the usual deadlines.

  • The deadline of 27 April has been extended to 25 May 2020
  • The deadline of 25 May has been extended to 25 June 2020
  • The deadline of 25 June has been extended to 27 July 2020

The deadlines for reporting EU sales exclusive of VAT have not been extended. The same goes for the VAT One Stop Shop filing deadlines. Please be aware of the usual deadlines.

 

No. You must pay VAT at the same usual deadlines.

We encourage you to file your VAT return at the original deadline and defer the payment. This is an advantage for your business if you are to have VAT refunded.

You may also still pay your VAT at the original deadline, but you must, however, file your VAT return and pay VAT no later than at the extended deadline. Please note that you should increase your refund limit on your tax account so that the paid amount is not refunded again. You must file a separate VAT return for each individual period at the new deadline even though the periods have been combined.

Statistics Denmark uses the VAT returns to highlight the current economic situation in Denmark, including statement of the National Accounts. It is important for them to be able to provide the best possible data basis to the decision-makers, also in this exceptional situation. You are therefore requested to file your VAT return as before and only defer the payment.

No, a refund of VAT is not included in the aid package. However, small and medium-sized businesses may apply for an interest-free VAT loan of an amount corresponding to the VAT the business declared for the fourth quarter 2019 (medium-sized businesses) or second half 2019 (small businesses) up to the 2 March 2020 deadline. Read more about VAT loans for small and medium-sized businesses.

Half-yearly VAT settlement
Settlement periodOriginal VAT and payment deadlinesNew extended payment deadline
1 January - 30 June 2020 1 September 2020 1 March 2021
1 July - 31 December 2020 1 March 2021 VAT for the combined periods is paid on 1 March 2021

You can see all VAT return and payment deadlines here.

Quarterly VAT
Settlement periodOriginal VAT return and payment deadlinesNew extended payment deadline
1 January - 31 March 2020 2 June 2020 1 September 2020
1 April - 30 June 2020 1 September 2020 VAT for the combined periods is paid on 1 September 2020

You can see all VAT return and payment deadlines here.

Monthly VAT
Settlement periodOriginal VAT return and payment deadlinesNew extended payment deadline
1 March - 31 March 2020 27 April 2020 25 May 2020
1 April - 30 April 2020 25 May 2020 25 June 2020
1 May - 31 May 2020 25 June 2020 27 July 2020

You can see all VAT return and payment deadlines here.

If you receive a reminder of one of the original deadlines, please disregard it. 

How is the declaration and payment deadline changed for payroll tax?

For businesses covered by the so-called method 4 (such as dentists, occupational therapists, physiotherapists, self-employed taxi drivers, etc.), the payment deadline for payroll tax is extended to:

  • 2nd quarter 2020 from 15 July 2020 to 1 September 2020
  • 3rd quarter 2020 from 15 October 2020 to 16 November 2020

The payment deadline for payroll tax on last year’s profit has not been extended.

Payroll tax (method 4)
Settlement periodOriginal declaration and payment deadlineNex extended declaration and payment deadline
2nd quarter 2020 15 July 2020 1 September 2020
3rd quarter 2020 15 October 2020 16 November 2020

Get an overview of all declaration and payment deadlines for payroll tax (in Danish).

What to do if I receive an automatic reminder of one of the original deadlines?

If you receive a reminder of one of the original deadlines, please disregard it. 

If you want to pay before the extended deadlines, you need to increase the refund limit on your tax account before you make the payment. This means that businesses with no liquidity challenges can continue to pay tax and VAT within the usual deadlines because they may keep the paid amount in their tax account up to the extended payment deadline.

If you do not increase your refund limit, the payment will be returned from your account to your business NemKonto as excess payment. To keep the paid amount in your tax account, you should log on to E-tax for businesses (TastSelv Erhverv) to change your refund limit on your tax account. You should do so before your make the payment.

  • You can increase the refund limit on your tax account from 7 May 2020 up to and including 1 April 2021.
  • The maximum refund limit on your tax account is DKK 100 billion.
  • The refund limit will automatically be reset to DKK 0 immediately after 1 April 2021.
  • If your business still wants a refund limit after 1 April 2021, you must set a new limit immediately after this.