The Danish Parliament has introduced a new loan scheme for A-tax (tax deducted from income at source) and labour market contributions (AM-bidrag) loans for small and medium-sized businesses. See if your are eligible to apply for a loan under Which small and medium-sized businesses can apply? Your business can apply for an interest-free loan corresponding to the A-tax and labour market contributions (AM-bidrag) reported on time for August and December 2020 if, during these settlement periods, your business was covered by section 2(5) of the Danish Debt Collection Act (Opkrævningsloven). This is laid down in section 1 in Act no. 122 on Interest-Free Loans Corresponding to Reported A-Tax and Labour Market Contributions Concerning Covid-19 of 30 January 2021. The loan must be repaid by 1 November 2021.
The application period is from 3 February to 31 March 2021. The small and medium-sized businesses that can apply for an A-tax loan have received a letter from us via e-Boks.
Who can apply?
Small and medium-sized businesses can apply for a in interest-free loan corresponding to the A-tax and labour market contributions (AM-bidrag) they reported on time for August and December 2020 at the deadlines of 10 September 2020 and 18 January 2021.
Businesses applying must meet the follwing requirements:
- be covered by the loan scheme for small and medium-sized businesses, see registration certificate, which must not contain 'Fremrykket betaling - stor virksomhed' (Deferred payment - large business)
- reported A-tax and labour market contributions on time for a least one of the periods August and December 2020.
- not be under bankruptcy, reorganisation proceedings, voluntary liquidation or compulsory winding-up
- not 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- not have one or more tax estimates which have not been replaced by a declaration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 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 be 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.
Which small and medium-sized businesses can apply?
Your business can apply if it is registered for payment of A-tax and labour market contributions as a small or medium-sized business in relation to A-tax and labour market contributions. You can find your registration certificate by logging on to E-tax for businesses (TastSelv Erhverv). Once logged on, you click 'Profil' → 'Registreringsbevis' (Registration certificate) → Hent registreringsbevis/ophørsbevis (pdf) (Download registration certificate/deregistration certificate). If under 'Afgift' (Tax) your business is registered for 'Indeholdelse af A-skat og am-bidrag' (Withholding A-tax and labour market contributions) it can apply for an A-tax loan.
Please note that we sent you a letter on 28 October 2020 if your registration for withholding A-tax and labour market contributions changed with effect from 1 January 2021. You can find the letter in your digital mailbox or in your message archive in E-tax for businesses (TastSelv Erhverv). You find the archive by loggin on to E-tax for businesses, click 'Kontakt' and then 'Meddelelsesarkiv (Message archive).
Businesses owing 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 your business but used to fully or partially cover your debt.
Size of the loan
The size of the loan corresponds to the A-tax and labour market contributions reported on time at the deadlines of 10 September 2020 and 18 January 2021.
How to apply for the loan
You can apply for the the loan at www.virk.dk from 3 February to 31 March 2021. You can complete and submit the application yourself, or you can get your business’s party representative to submit 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)
The expected application processing time is five 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 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).
How is the loan disbursed?
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 log on to E-tax for businesses (TastSelv Erhverv) to change youru disbursement limit in the tax account.
When tranferring 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.
If your business redeclares a negative amount after the first declaration
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.
Repayment of loan
The business must repay the loan via its tax account 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 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.
Contact us if you have any questions
Please call us on (+45) 72 22 12 39 if you have any questions about the application, loan, repayment, etc.