The Government has passed several bills related to the Coronavirus situation with the purpose of supporting Danish trade and industry and Danish employees in order to ease the pressure on the liquidity of Danish businesses. Public authorities and institutions are not covered by the adapted rules.

VAT loans and payroll tax loans are some of the measures introduced to help business, and so are extended reporting and payment deadlines. We have put this page together to help you find out what the initiatives of the aid package mean to your business.

You can read more in Danish about aid packages and the precautions you can take in your business at www.virksomhedsguiden.dk

Contact us if you need help
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. 

If you hear children crying or dogs barking in the background when you call us, it is because we are working from home to help you with your tax issues. Yet, we will do our best to guide you.

Latest updates on aid packages

Date and time Added information about
24 March 2021, 10:30
5 March 2021, 08:30
4 March 2021, 14:00
26 February 2021, 18:00
9 February 2021, 19:00

The compensation schemes of the COVID-19 aid packages are generally considered taxable income and should be included in the taxable income in your tax return. All compensation related to your business operations must be included in the taxable profit of your business.
We regularly receive information from third parties about compensation paid and this information will be included when we check business declarations.

How are compensation schemes taxed?

Compensation for businesses is included in the financial results of the business and any profits will be taxed differently depending on your type of business:

Personally owned businesses (using the business tax scheme):

Personally owned businesses using the business tax scheme (virksomhedsordningen) must calculate their income according to the Danish Business Income Tax Act (Virksomhedsskatteloven) and consequently include any compensation received in the financial results of the business. You pay labour market contributions (AM-bidrag) on the part of the compensation that is taken out of the business, which is considered personal income. 

Personally owned businesses (not using the business tax scheme):

Personally owned businesses not using the business tax scheme must calculate income according to the Danish Personal Tax Act (Personskatteloven). This means that you should include any compensation in the profits of your business (before financial items) and as personal income. You pay labour market contributions (AM-bidrag) on the profit that is included as personal income. 
If your personal income exceeds the top-bracket tax limit of DKK 544,800 in 2021, any compensation after paid labour market contributions may be taxed by up to around 53%.

Companies

Companies must include any compensation amount received in the company’s profits, which are taxed according to the rules of the Danish Corporation Tax Act (Selskabsskatteloven). 

Foundations, associations etc.:

Associations, self-governing institutions etc. are only taxable on compensation received in relation to a taxable and commercial business. Associations etc. are taxable according to the Corporation Tax Act and the same applies to certain foundations. Other foundations are covered by the Danish Foundation Tax Act (Fondsbeskatningsloven) and must be used to calculate your income.

B-income (fees):

If you receive B-income, you must include any compensation in your personal income. You pay labour market contribution (AM-bidrag) on the compensation amount. 
If your personal income exceeds the top-bracket tax limit of DKK 544,800 in 2021, any compensation after paid labour market contributions may be taxed by up to 53%.

Read more about B-income.

Freelancers:

If you carry out freelance work, you will be taxed in the same way as if you receive B-income unless you run an independent commercial business. In that case, you will be taxed as a personally owned business. 

Compensation for pay

Compensation for pay is financial support or subsidies offered to businesses with employees only during periods when the business is affected by Covid-19 restrictions. As a result, compensation for pay must be included as taxable income like other types of Covid-19 compensation.
Pay for employees, however, is not affected by any compensation for pay received by your business, and you should therefore treat salaries as usual.

Time of taxation


According to the current rules, taxable COVID-19 compensation should be taxed once the business has gained the final right to the compensation. As a result, the time of taxation will in certain cases depend on a specific assessment of the circumstances of the cases. And we recommend that you consider the information you received along with the compensation.

Reflection on new legislation on time of taxation


The current rules on the time of taxation could give rise to confusion. Therefore, the Danish Ministry of Taxation is looking into a possible change of legislation so that it will be more clear when COVID-19 compensation should be taxed.

When your business has been compensated from the aid packages, the compensation is generally not subject to VAT. The reason is that subsidies given as gifts, which means subsidies that you and your business receive without having to do anything in return, are not subject to VAT.

However, please note that in certain cases you still have to pay VAT on the subsidy and that it will have an impact on the VAT return you need to file.

Such cases could be:

Subsidy - when you have been given a subsidy to lower the price for your customers

If you have been granted a subsidy in order to lower the price of your good or services, you need to pay VAT unless you provide goods or services exempt from VAT. If the goods or services are exempt from VAT, the subsidy is included in the overall calculation of the deduction rate (pro rata).

Subsidies related to the sale of tickets to cultural events or ferry tickets 

If you have received subsidies from the summer aid packages for, for example, selling tickets to cultural events or tickets for ferry crossings, special rules apply which have an impact on the calculation of your VAT. Please call us on 72 22 12 39 if you have any questions.
See our legal guide for further and extensive legal information in Danish on gifts or remuneration/subsidies

VAT compensation for charitable associations etc.

We consider compensation for pay and compensation for fixed costs as extraordinary. This means that charitable associations should not include these amounts in their self-financing ratio - neither as private income nor as other income (including amounts received from public authorities).

Compensation received from the Danish State to cover half of the admission price for museums etc. in 2020 may be included as own income, despite the fact that it was granted by the State.

Payroll tax

Please note that the subsidy could also have an impact on the payroll tax you have to pay. 
See our legal guide for further and extensive legal information in Danish on payroll tax.

The Danish Parliament has introduced a number of loan schemes for A-tax (tax deducted from income at source) and labour market contributions (AM-bidrag) for small and medium-sized businesses and for large businesses. Businesses can apply for an interest-free loan corresponding to the amount of A-tax and labour market contribution which it has reported on time or which it will report for the periods the loans will cover. A total of tree A-tax loan schemes have been established.

Businesses that can apply for an A-tax loan have received or will receive a letter from us via e-Boks.

Overview of A-tax loans for small and medium-sized businesses
Application period Settlement period Repayment deadline Reporting deadline for the settlement period Payment deadline for the settlement period
3 February - 31 March 2021 August 2020 1 November 2021 10 September 2020 29 January 2021
3 February - 31 March 2021 August 2020 1 November 2021 18 January 2021 18 January 2021
8 March - 8 April 2021 January 2021 1 April 2022 10 February 2021 10 February 2021
9 April - 7 May 2021 September 2020 1 June 2022 12 October 2020 31 March 2021
9 April - 7 May 2021 February 2021 1 June 2022 10 March 2021 10 March 2021

You can only apply for a loan covering the settlement periods included in the application deadline. As a result, you cannot apply for a loan for only one settlement period if the application period covers two settlement periods.

Example

In the period of 3 February until 31 March, small and medium-sized businesses can apply for a loan for the settlement periods of September 2020 and December 2020. The business cannot apply for a loan only for the settlement period of August 2020.

Overview of A-tax loans for large businesses
Application period Settlement period Repayment deadline Reporting deadline for the settlement period Payment deadline for the settlement period
8 March - 8 April 2021 February 2021 1 April 2022 26 February 2021 26 February 2021
9 April - 7 May 2021 September 2020 1 June 2022 30 September 2020 16 March 2021
9 April - 7 May 2021 March 2021 1 June 2022 31 March 2021 31 March 2021

You can only apply for one loan covering the settlement periods included in the application deadline. As a result, you cannot apply for a loan for only one settlement period if the application period covers two settlement periods.

Example

In the period of 9 April to 7 April, large businesses can apply for a loan for the settlement periods of September 2020 and March 2021. The business cannot apply for a loan only for the settlement period of September 2020.

You have reported correctly and timely if you want to apply for a loan. Otherwise, your business is not eligible for an A-tax loan.

If your business has not reported on time, it will not be eligible to apply for a loan for that particular settlement period. If your business has obtained a loan, but subsequently fails to report on time and the Tax Agency estimates its tax, it means that the business no longer meets the requirements. As a result, the loan must be repaid immediately, as the business no longer meets re requirements.

If the business does not pay on time, you should be aware that:

  • it may still be possible to obtain a loan. The missing payment will be converted into an interest-free loan, but the loan will be used to cover the outstanding amount - and therefore it will not be paid out to the business.
  • interest will be added until a possible loan is granted.
  • you may receive a payment reminder and if so, you will also be charged a reminder fee.
  • a possible loan will not include interest and fees. As a result, interest and fees should be paid by the business, otherwise they will be transferred for debt collection.
  • not all businesses may be approved for a loan (this could be businesses under bankruptcy, reorganisation proceedings, voluntary liquidation or compulsory winding-up). This means that if the business does not pay, the missing payment will be transferred for debt collection.

Businesses can apply for an interest-free loan corresponding to the A-tax and labour market contributions (AM-bidrag) they reported on time for the various periods.

In order to obtain the loan, businesses must:

  • have reported A-tax and labour market contributions on time for a least one of the periods related to the loan.
  • not be under bankruptcy, reorganisation proceedings, voluntary liquidation or compulsory winding-up
  • not have provided security or been ordered to provide security under section 11 of the Danish Tax Collection Act (Opkrævningsloven). Read more in our Danish-language legal guide
  • not have one or more tax estimates which have not been replaced by a declaration
  • not have a natural or legal person who has been convicted of tax fraud within the past ten years, and who:
    • owns the business
    • actually runs the business
    • is a member of the business’s board of directors or executive board
    • is a branch manager in the business
  • not have changed 50% or more of the ownership during the period from 17 December 2020 up to and including the loan application date. It is, however, possible to apply if you enclose an auditor’s statement confirming the ownership
  • not have been a public institution
  • not have an active CVR or SE number (central business reg. no./VAT no.).

Your business must meet the above requirements during the entire application period.

Your business can apply if it is registered for payment of A-tax and labour market contributions (AM-bidrag).

Businesses owing money to the state may apply for a loan. If a loan is granted, it will not be paid to your business but used to fully or partially cover your debt. This way your business actually obtains an interest-free extension of payment. Other corona aid packages should not be considered debt to the state in this connection.

The size of the loan corresponds to the A-tax and labour market contributions (AM-bidrag) reported on time for the periods relevant for the loan.

You can only apply for one loan covering the settlement periods included in the application deadline. As a result, you cannot apply for a loan for only one settlement period if the application period covers two settlement periods.

Example

In the period of 9 April to 7 April, large businesses can apply for a loan for the settlement periods of September 2020 and March 2021. The business cannot apply for a loan only for the settlement period of September 2020.

You can apply for the the loan at www.virk.dk for different periods:

  1. A-tax loans only for small and medium-sized businesses: From 3 February 2021 to 31 March 2021
  2. A-tax loans for small, medium-sized and large businesses: From 8 March 2021 to 8 April 2021
  3. A-tax loans for small, medium-sized and large businesses: From 9 April 2021 to 7 May 2021

You can complete and submit the application yourself, or you can get your business’s party representative to do it. Read more about typical party representatives in our Danish-language legal guide.

Read more about the application process at www.virk.dk.

Apply for an interest-free loan at www. virk.dk (only available in Danish)
(Application period 3 February tp 31 March 2021)

The expected application processing time is twelve banking days (unless there are circumstances in the business that must be checked). The loan will be paid to your business tax account.

You will get a reply from us in E-tax for businesses

You will receive a reply in your business's message box in E-tax for businesses (TastSelv Erhverv). You can find the message box in E-tax for businesses under ‘Kontakt’ (Contact) and then ‘Se svar fra os’ (Replies from us).

You need to sign up for messages in E-tax to see our reply. Read more about how to sign up for messages in E-tax

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

If you have any unpaid debt on your tax account, the loan will be used to pay the debt first.  Subsequently, any other debt to the state that is in the process of being collected will be offset against the loan.  Any remaining amounts will be paid to your business NemKonto.

However, the loan can only be disbursed if you reduce your business's disbursement limit to a low amount, allowing for the remaining amounts from the loan to be paid to your business NemKonto automatically. You can read more about changing the disbursement limit further down on this page.

You can log on to E-tax for businesses (TastSelv Erhverv) to change youru disbursement limit in the tax account.

When transferring a loan to others (disbursement transfer)

A business may transfer part or all of the loan to a third party.  This is also referred to as disbursement transfer.

Read more about the guidelines for transferring a disbursement on the website of the Danish Debt Collection Agency (Gældsstyrelsen (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. 

Re-declaration of negative amount before the loan is paid out

If, before the loan is paid out, your business makes a negative re-declaration (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.

Re-declaration of negative amount after the loan is paid out 

If, after the loan is paid out, your business makes a negative re-declaration (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 re-declaration.

The business must repay the loan via its tax account.

  1. A-tax loans for small and medium-sized business with application periods from 3 February 2021 until 31 March 2021:
    No later than 1 November 2021.
  2. A-tax loans for small, medium-sized and large businesses with application periods from 8 March 2021 until 8 April 2021:
    No later than 1 April 2022.
  3. A-tax loans for small, medium-sized and large businesses with application periods from 9 April 2021 until 7 May 2021:
    No later than 1 June 2021.

If the business does not repay the loan on time, it will incur debt to the state on which interest is added.  If the business’s total debt exceeds DKK 5000, a payment reminder will be issued. If the business still fails to repay, the debt will be transferred 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.

Please call us on (+45) 72 22 12 39 if you have any questions about the application, loan, repayment, etc.

The Danish Parliament has adopted another VAT loan scheme enabling small and medium-sized businesses to obtain interest-free loans corresponding to the amount of VAT they have to declare and pay on 1 March 2021 at the latest.

Facts about the VAT loan (17 March 2021 - 14 April 2021)

Who: Small and medium-sized businesses settling VAT quarterly or each six months

Application period: 17 March 2021 to 14 April 2021

Repayment deadline: 1 Februar 2022

Loan amount for small businesses: Corresponding to the VAT amount your business declared on time for the first and second half of 2020 (deadline 1 March 2021)
Loan amount for medium-sized businesses: Corresponding to the VAT amount your business declared on time for the third and fourth quarter of 2020 (deadline 1 March 2021).

It is only possible to apply for a loan covering both settlement periods (first and second half or third and fourth quarter, respectively). This means that you cannot apply for a loan for just one period. 

Businesses applying have to 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 29 January 2021 up to and including the loan application date. It is, however, possible to apply if you enclose an auditor’s statement confirming the change of ownership.
  • not be a financial undertaking or credit institute according to section 5(1) paras (1) and (2) of the Danish Financial Business Act.

Your business must meet the above requirements throughout the entire loan period.

Remember to file your VAT return on time

To apply for the loan, it is important that you have filed your VAT return correctly and by the deadline of 1 March 2021. If not, your business cannot be considered for such a VAT loan.        

In addition, you should make sure to settle any outstanding issues, such as replacing one or more tax estimates with a correct declaration. Read more under 'If your loan application has been rejected due to a tax estimate".

If you have been granted a loan but forget to declare A-tax and labour market contributions, VAT or excise duties on time, resulting in your taxes payable being based on an estimate, your business no longer meet the loan requirements. You must therefore repay the loan immediately after your business no longer meet the requirements.           

If your business does not pay on time, you should be aware that:

  • you may still be eligible for a loan. Your missing payment will be converted to an interest-free loan, but the loan will be used to cover the outstanding amount - and as a result the loan will not be paid out.
  • interest will be added to the VAT amount due until you will possibly be granted a loan.
  • we may remind you to pay the outstanding about and in this case, you will be charged a reminder fee.
  • a possible loan will not include such interest and fees. As a result, your business should pay for such interest and fees. Otherwise, they will be transferred for debt collection.
  • you should apply for a loan in the beginning of the period as your business will have to pay fees and interest related to the payment during the application period and while your application is being processed. Also, you risk that these fees and interest is transferred for debt collection if your business already has debt to be collected.
  • it is not all businesses that may be approved for a loan (including businesses subject to bankruptcy, reorganisation proceedings, voluntary liquidation or compulsory winding-up). This means that if the business does not pay in any other way, the missing payment will be transferred for debt collection.

If your business owes money to the state

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. Other state-aid packages are not considered as debt to the state.

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 of the declaration on which the loan is based, the amount will be offset against repayment of the loan.

You can apply for the the loan from 17 March 2021 to 14 April 2021 via www.virk.dk. You can complete and submit the application yourself, or you can get your business’s party representative to do it. Read more about typical party representatives in our Danish-language legal guide.

Read more about the application process at www.virk.dk.

Apply for an interest-free VAT loan for small and medium-sized businesses at www. virk.dk (only available in Danish)
(Application period 17 March to 14 April 2021)

If you have not paid VAT on time, you should apply for a loan in the beginning of the period as your business will have to pay fees and interest related to the payment during the application period and while your application is being processed. Also, you risk that these fees and interest are transferred for debt collection if your business already has debt to be collected.

How to replace an estimate with a correct declaration

Please note that if your business's taxes and duties have been based on an estimate within the past 3 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 this estimate with the correct declaration and then apply for a loan. If you have applied and your application was rejected because your business has an active estimate, you can replace it with a correct declaration and then reapply 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 in Businesses.
  6. It may take up to 4 days until your new declaration is shown on your tax account. You should therefore wait 4 days before reapplying for a loan.

To which account is the loan disbursed?

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 first be used to pay these. Then the loan will be offset against any other debt to the State (if your business owes money to the State). Any remaining amounts from the loan will be paid 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 paid to your business NemKonto automatically. 

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

When transferring the loan to others (disbursement transfer)

A business may transfer part or all of 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.

  • 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 29 January 2021 up to and including the loan application date. It is, however, possible to apply if you enclose an auditor’s statement confirming the change of ownership.
  • not be a financial undertaking or credit institute according to section 5(1) paras (1) and (2) of the Danish Financial Business Act.

Your business must meet the above requirements throughout the entire loan period.

If, either once or repeatedly, you forget or fail to make a declaration after your business has been granted a loan, your business no longer meets the loan requirements. You must repay the loan immediately after you no longer meet the requirements.  

The business must repay the loan via its tax account.

  1. VAT loans with application periods from 17 March to 14 April 2021:
    No later than 1 February 2022.
  2. VAT loans and payroll tax loans with application periods from 17 November 2020 to 18 December 2020:
    No later than 1 November 2021.
  3. VAT loans and payroll tax loans with application periods from 5 May 2020 to 16 June 2020:
    No later than 1 November 2021.

If the business does not repay the loan on time, it will incur debt to the state on which interest is added. If the business’s total debt exceeds DKK 5,000, a payment reminder will be issued. If the business still fails to repay, the debt will be transferred for collection.

If your business cannot repay the VAT loan by the current payment deadline, your business may set up a payment agreement. To so, however, your business must meet certain requirements.

If, during the loan period, your business no longer meets the conditions for being granted the loan, te loan should be repaid immediately once the business no longer meets the conditions. This applies if, for example, the business experiences compulsory dissolution or if the business' taxes have been based on an estimate. If the business closes, the loan should be repaid by no later than two weeks after the business has been de-registered.

Please call us on (+45) 72 22 12 39 if you have other questions in relation to your application, the loan, repayment or anything else you need an answer to.

We are ready to take your call on Mondays from 9 am to 5 pm, Tuesdays, Wednesdays and Thursdays from 9 to 4 pm and Fridays from 9 am to 2 pm.

If you hear children crying or dogs barking when you call us for assistance, it is because we are working from home. Yet, we will do our very best to guide you.

Response to your application within 12 banking days

If you have already applied for a loan, we will get back to you within 12 banking days (however, this does not apply if there are matters in your business that we need to check).

You will receive our response in your business message folder in E-tax for businesses (TastSelv Erhverv. You can find your message folder in E-tax for businesses under 'Kontakt' (Contact) and then 'Se svar fra os' (See our response).

You need to sign up for messages in E-tax to see our reply. Read more about how to sign up for messages in E-tax

The deadline for payment of registration tax for March 2021 has been extended for all businesses registered for registration tax. The payment deadline for March is automatically extended to 15 November 2021. No interest is payable on the deferred amount. 

Only the payment is deferred. This means that the relevant businesses must still declare registration tax on their monthly return for March and approve the return no later than 15 April 2021.

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)

All businesses liable to pay withheld A-tax and labour market contributions are covered by the deferral rules. Please read more below about what is relevant to your business.

Generally, public authorities and institutions, including municipalities and regions are not included by the extended deadlines and as a result these should make their declarations and payments as usuas.

  • The payment deadline of 12 October 2020 has been extended to 31 March 2021
  • The payment deadline of 10 November 2020 has been extended to 31 May 2021
  • The payment deadline of 10 May 2021 has been extended to 27 September 2021

The declaration deadlines have not been changed.

As a result the upcoming payment deadlines for small and medium-sized businesses are as follows:
Payment deadline Settlement period Declaration deadline
10 March 2021 (not extended) February 2021 10 March 2021
31 March 2021 (extended from 12 October 2020) September 2020 12 October 2020
12 April 2021 (not extended) March 2021 12 April 2021
31 May 2021 (extended from 10 November 2020) October 2020 10 November 2020
10 June 2021 (not extended) May 2021 10 June 2021
27 September 2021 (extended from 10 May 2021) April 2021 10 May 2021
After this, the ordinary payment deadlines apply  June - December 2021 10th of the month after the settlement period

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

  • The payment deadline of 30 September 2020 is extended to 16 March 2021
  • The payment deadline of 30 October 2020 is extended to 17 May 2021
  • The payment deadline of 31 May 2020 is extended to 15 October 2021

The declaration deadlines will not be changed.

As a result the upcomng payment deadlines for large businesses are as follows:
Payment deadline Settlement period Declaration deadline
26 February 2021 (not extended) February 2021 26 February 2021
16 March 2021 (extended from 30 September 2020) September 2020 30 September 2020
31 March 2021 (not extended) March 2021 31 March 2021
29 April 2021 (not extended) April 2021 29 April 2021
17 May 2021 (extended from 30 October 2020) October 2020 30 October 2020
15 October 2021 (extended from 31 May 2021) May 2021 31 May 2021
After this, the ordinary payment deadlines apply  June - December 2021 The last working day of the settlement period

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 means of this Danish-language application form (www.virk.dk) or by completing the contact form in E-tax for businesses (TastSelv Erhverv).

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 same applies to companies whose tax return filing deadline is October 2020 for income year 2020.

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.

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 period Original declaration and payment deadline Nex 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 of your tax account. 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) and change the refund limit of your tax account. You should do so before your make the payment.

  • You can increase the refund limit of your tax account from 7 May 2020 up to and including 1 June 2022.
  • The maximum refund limit of your tax account is DKK 100 billion.
  • The refund limit will automatically be reset to DKK 0 immediately after 1 June 2022.
  • If your business still wants a refund limit after 1 June 2022, you should set a new limit immediately after this according to the rules the apply at that time.

Update 30 November at 3:30 pm

We are in the process of clarifying the tax implications of receiving financial compensation due to the corona situation. We will update this page with the correct guidance as soon as possible.

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