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
26 February 2021, 18:00
9 February 2021, 19:00

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.

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

Application period: 17 March 2021 to 14 April 2021
Repayment deadline: 1 February 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. 

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.
  • 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.

Small and medium-sized businesses can apply.

Medium-sized businesses settling VAT on a quarterly basis typically include new businesses and businesses with a turnover of DKK 5 million to DKK 50 million.

Small businesses settling VAT on a half-yearly basis include businesses with a turnover of less than DKK 5 million.

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.
  • your business must meet the above requirements throughout the entire loan period
  • not be a financial undertaking or credit institute according to section 5(1) paras (1) and (2) of the Danish Financial Business Act.

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 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.

You reapply by calling us on (+45) 72 22 12 39.

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.

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.

Small businesses can apply for an interest-free VAT loan equal to the VAT the business declared on time for the first and second half of 2020 (deadline 1 March 2021). 

Medium-sized businesses can apply for an interest-free VAT loan equal to the VAT the business declared on time for the third and fourth quarter of 2020 (deadline 1 March 2021).

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.

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.

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.

If your business's taxes are based on an estimate after you have been granted at loan

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 no later than 1 February 2022.

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.

Please call us on (+45) 72 22 12 39 if you need help in relation to repaying the loan.

This applies no matter if you want to make an optional repayment or if during the loan period your business no longer meets the conditions for being granted the loan. The 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 deregistered.

Please contact us if you have other questions in relation to the loan. This could be in relation to the application you have made, a loan your business has been granted or other questions in general. You can call us on (+45) 72 22 12 39.

Response to your application within 12 banking days

If you have already applied for a loan, we will get back to you within 5 banking days (however, this does not apply if the business is affected by anuncontrollable situation within the business). 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).

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 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 payment deadline of 10 August has not been extended
  • The payment deadline of 10 September has been extended to 29  January 2021
  • The payment deadline of 12 October has been extended to 31 MArch 2021
  • The payment deadline of 10 November has been extended to 31 May 2021

The declaration deadlines have not been changed.

As a result the upcomng payment deadlines for small and medium-sized businesses are as follows:
Payment deadlineSettlement periodDelcaration deadline
10 August 2020 (not extended) July 2020 10 August 2020
10 September 2020 (extended from 11 May 2020) April 2020 11 May 2020 
12 October 2020 (extended from 10  June 2020) May 2020 10 June 2020
10 November 2020 (extended from 10 July 2020) June 2020 10 July 2020
10 December 2020 (not extended) November 2020 10 December 2020
18 January 2021 (not extended) December 2020 18 January 2021
29 January 2021 (extended from 10 September 2020) August 2020 10 September 2020
10 February 2021 (not extended) January 2021 10 February 2021
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
10 May 2021 (not extended) April 2021 10 May 2021
31 May 2021 (extended from 10 November 2020) October 2020 10 November 2020
10 June 2021 (not extended) May 2021 10 June 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 31 March is not 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 payment deadline of 31 July is not extended
  • The payment deadline of 31 August is extended to 15 January 2021
  • The payment deadline of 30 September is extended to 16 March 2021
  • The payment deadline of 30 October is extended to 17 May 2021

The declaration deadlines will not be changed.

As a result the upcomng payment deadlines for large businesses are as follows:
Payment deadlineSettlement periodDelcaration deadline
31 July 2020 (not extended) July 2020 31 July 2020
31 August 2020 (extended from 30 April 2020) April 2020 30 April 2020
30 September 2020 (extended from 29 May 2020) May 2020 29 May 2020
30 October 2020 (extended from 30 June 2020) June 2020 30 June 2020
30 November 2020 (not extended) November 2020 30 November 2020
30 December 2020 (not extended) December 2020 30 December 2020
15 January 2021 (extended from 31 August 2020) August 2020 31 August 2020
31 January 2021 (not extended) January 2021 31 January 2021
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
31 Mayj 2021 (not extended) 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.

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.
  • For companies with a tax return filing deadline for in October 2020 for income year 2020, the deadline has been extended to 31 January 2021.

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
Contributions to company termination pension scheme with tax relief 30 June 2020 1 September 2020
Declaration of 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. The deadline for optional payment of outstanding tax is not deferred.

  • 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.
  • 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 August, September and October. We will notify you via digital post when it is time to pay the first instalment. Please note that the extended declaration deadline of 1 September may mean that your instalments may be charged at a later point in time. 

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. Additionally, the deadlines for third and fourth VAT periods are also combined. However, you still have to report each period.

Medium-sized businesses settling quarterly generally include newly-registered businesses and businesses with a turnover between DKK 5 million and DKK 50 million.

Small businessess settling on a half year basis include businesses with a total turnover of less than DKK 5 million.

If you are unsure of which settlement period applies to your business, you can log on to E-tax for businesses and check it under Moms (VAT).

This extends the filing and payment deadlines for VAT returns:

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

The periods are combined, so that if your business settles quarterly, you pay VAT in continuation of the VAT return for the second and fourth periods. Whereas if your business settles every six months, you pay VAT in continuation of the VAT return for the second period.

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

Extended quarterly VAT settlement:

  • The 2 June 2020 deadline is extended to 1 September 2020
  • The 1 September 2020 deadline remains  unchanged
  • The 1 December 2020 deadline is extended to 1 March 2021
  • The 1 March 2021 remains unchanged

Extended halv-year settlement:

  • The 1 September 2020 deadline is extended to 1 March 2021
  • The 1 March 2021 deadline remains unchanged

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.

For large businesses settling VAT on a monthly basis and which include businesses with a turnover of more than DKK 50 million the deadline for filing their VAT return and paying their VAT has been extended as follows:

  • 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 deadline of 17 August is not extended as it is already an extended deadline
  • The deadline of 25 August has been extended to 9 September 2020
  • The deadline of 25 September has been extended to 2 October 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 only defer the payment.

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.

If you still want to make your payment at the original deadline

You may also still pay your VAT at the original deadline. But please note that you should increase your refund limit on your tax account so that the paid amount is not refunded again. You can read more about the refund limit in under Payment before the extended deadlines (new refund limit on the tax account) further down on this page.
You must file a separate VAT return and make the relevant payment for each individual period at the new deadline even though the periods have been combined.

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 filing and payment deadline for VAT returns
1 January - 30 June 2020 1 September 2020 1 March 2021
1 July - 31 December 2020 1 March 2021 Two separate VAT returns must be filed for the two periods and paid by 1 March 2021

You may file your VAT return by the original payment deadline

We encourage you to file your VAT return at the original payment deadline if you can and only wait to make your payment.

If you (no later than 1 September 2020) file a negative VAT return for the first six months of 2020, you will be paid the negative VAT according to the rules for payment of negative VAT.

If you file a VAT return within the original deadline, you may still pay by the original deadline. Please note that you should increase your refund limit (udbetalingsgrænse) in your tax account so that the amount you pay is not returned to you. Read more about the refund limit in the section Paying before the extended deadlines (new limit in the tax account) below.

You can see all VAT return and payment deadlines here.

Quarterly VAT
Settlement periodOriginal VAT return and payment deadlinesNew extended filing and payment deadline for VAT returns
1 January - 31 March 2020 2 June 2020 1 September 2020
1 April - 30 June 2020 1 September 2020 Two separate VAT returns must be filed for the two periods and paid by 1 September 2020
1 July - 30 September 2020 1 December 2020 1 March 2021
1 October - 31 December 2020 1 March 2021 1 March 2021 (not extended)

You may file your VAT return by the original payment deadline

We encourage you to file your VAT return by the original payment deadline if you can and only wait to make your payment.

If you (no later than 1 December 2020) file a negative VAT return for the third quarter of 2020, you will be paid the negative VAT according to the rules for payment of negative VAT.

If you file a VAT return by the original deadline, you may still pay by the original deadline. Please note that you should increase your refund limit (udbetalingsgrænse) in your tax account so that the amount you pay is not returned to you. Read more about the refund limit in the section Paying before the extended deadlines (new limit in the tax account) below.

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
1 June - 30 June 2020 17 August 2020 17 August 2020 (not extended)
1 July - 31 July 2020 25 August 2020 9 Sepbember 2020
1 August - 31 August 2020 25 September 2020 2 October 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 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 November 2021.
  • 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 November 2021.
  • If your business still wants a refund limit after 1 November 2021, 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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