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. 

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.

You can no longer apply for A-tax loans. If your business was granted an interest-free loan via the Danish Parliament's A-tax and labour market contributions loan scheme in connection with COVID-19, you can read about the conditions for keeping the loan and the repayment deadlines below.

The business must repay the loan via its tax account. The loan will appear as a future entry in your business tax account with a payment deadline. You repay the loan as other claims are repaid in the tax account.

The size of the loan corresponds to the amount your business reported on time during the settlement period.

A-tax loan Settlement period Application period Payment deadline
1 August 2020 and December 2020 3 February 2021 to 31 March 2021 1 November 2022
2

Small and medium-sized businesses: January 2021

Large businesses: February 2021

8 March 2021 to 8 April 2021 1 April 2022
3

Small and medium-sized businesses: September 2020 and February 2021

Large businesses: September 2020 and March 2021

9 April to 7 May 2021 1 June 2022
4

Small and medium-sized businesses: March 2021

Large businesses: April 2021

10 May to 7 June 2021 1 February 2023
5 October 2020 8 June 2021 to 22 June 2021 1 May 2023

If your business cannot repay the loan on time, it will incur debt to the state on which interest is added. Interest is calculated according to interest rates in the tax account.

If your business’s total debt exceeds DKK 5000, it will receive a payment reminder. If the business still fails to repay, the debt will be transferred for collection.

You can set up a payment arrangement

If the business cannot repay the A-tax loan within the payment deadline, it may set up a payment arrangement. However, to do so the business must meet certain requirements.

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.

If the business closes, the loan must be repaid two weeks after the business’s registration ends.

Businesses could 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:

  • may not be under bankruptcy, reorganisation proceedings, voluntary liquidation or compulsory winding-up
  • may 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
  • may not have one or more tax estimates which have not been replaced by a declaration
  • may 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
  • may 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
  • may not be a public institution
  • may to have an active CVR or SE number (central business reg. no./VAT no.).

If your business owed money to the state

Businesses that owed money to the state could apply for a loan. If a loan was granted, it would not be paid to your business but used to fully or partially cover the debt of your business. This way your business actually obtained an interest-free extension of payment.

Other corona aid packages should not be considered debt to the state in this connection.

If, on one or more occasions, you forget or fail to make a declaration after your business has been granted a loan, the business no longer meets the conditions. As a result, the loan must be repaid once the business no longer meets the conditions.

You can terminate your loan at any time.

You send a request via E-tax for business and state that you want to repay the entire loan and the date that you want to do so - however, no sooner that seven days after you have sent your request - and what type of loan you want to repay.

The final payment deadline will be changed and your business may repay the loan. The loan will remain in the account status of your tax account.

Log on to E-tax for business

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

If, before the loan was paid out, your business made a negative re-declaration (i.e. a declaration of a negative amount) of the declaration on which the loan was based, the amount would be offset against the loan before the remaining amount was paid out.

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

If, after the loan was paid out, your business made a negative re-declaration (i.e. a declaration of a negative amount) of the declaration on which the loan was based, the amount would be offset against the loan before any payout of the remaining amount from the negative re-declaration.

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

We are ready to take your call on Mondays 9-17, Tuesdays, Wednesdays and Thursdays 9-16 and Fridays 9-14.

You can no longer apply for VAT loans. If your business was granted an interest-free loan via the Danish Parliament's VAT loan scheme in connection with COVID-19, you can read about the conditions for keeping the loan and the repayment deadlines below.

The business must repay the loan via its tax account. The loan will appear as a future entry in your business tax account with a payment deadline. You repay the loan as other claims are repaid in the tax account.

The size of the loan corresponds to the amount your business reported on time during the settlement period.

VAT loan Settlement period Application period Payment deadline
1

For small businesses: 2nd half of 2019

For medium-sized businesses:

For businesses subject to payroll tax: Depends on the declaration method.

17 November 2020 to 18 December 2020 1 November 2021
2

For small businesses: 2nd half of 2019 

For medium-sized businesses: 4th quarter of 2019

For businesses subject to payroll tax: Depends on the declaration method.

5 May 2020 to 16 June 2020 1 November 2021
3

For small businesses: 1st and 2nd half of 2020 (Deadline 1 March 2021)

For medium-sized businesses: 3rd and 4th quarter of 2020 (Deadline 1 March 2021)

17 March 2021 to 14 April 2021 1 February 2022
4

1st quarter of 2021 (Deadline 1 June 2021)

2 June 2021 to 16 June 2021 1 November 2022

If your business cannot repay the loan on time, it will incur debt to the state on which interest is added. Interest is calculated according to interest rates in the tax account.

If your business’s total debt exceeds DKK 5000, it will receive a payment reminder. If the business still fails to repay, the debt will be transferred for collection.

You can set up a payment arrangement

If the business cannot repay the A-tax loan within the payment deadline, it may set up a payment arrangement. However, to do so the business must meet certain requirements.

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. 

If the business closes, the loan must be repaid two weeks after the business's registration ends.

To keep the loan, the business: 

  • may not be a public institution.
  • may not be under bankruptcy or reorganisation proceedings, voluntary liquidation or compulsory winding-up.
  • may not have one or more tax estimates which were not replaced by a declaration. Read more below.
  • may not have provided security or had been ordered to provide security under section 11 of the Danish Tax Collection Act (Opkrævningsloven).
  • may not have a natural or legal person who had been convicted of tax fraud within the past ten years, and who:
    • owned the business
    • ran the business in practice
    • was a member of the business’s board of directors or executive board
    • was a branch manager in the business
  • may not have changed 50% or more of the ownership during the following periods
    • VAT loan 1: period of 9 April until 15 June 2020
    • VAT loan 2: period of 27 October until 18 December 2020
    • VAT loan 3: period of 29 January 2021 until and including the loan application date
    • VAT loan 4: period of 24 March 2021 until and including the loan application date
    • It was, however, possible to apply if you enclosed an auditor’s statement confirming the change of ownership.
  • may not be a financial undertaking or credit institute according to section 5(1) paras (1) and (2) of the Danish Financial Business Act.
  • has to have an active CVR or SE no. If a CVR no. was cancelled (for example due to a merger between to businesses), the business was no longer entitled to the loan and we cancelled the loan.

If your business owed money to the state

Businesses that owed money to the state could apply for a loan. If a loan was granted, it would not be paid to your business but used to fully or partially cover the debt of your business. This way your business actually obtained an interest-free extension of payment. 

Other corona aid packages should not be considered debt to the state in this connection.

If, on one or more occasions, you forget or fail to make a declaration after your business has been granted a loan, the business no longer meets the conditions. As a result, the loan must be repaid once the business no longer meets the conditions.

You can terminate your loan at any time.

You send a request via E-tax for business and state that you want to repay the entire loan and the date that you want to do so - however, no sooner that seven days after you have sent your request - and what type of loan you want to repay.

The final payment deadline will be changed and your business may repay the loan. The loan will remain in the account status of your tax account.

Log on to E-tax for business

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

If, before the loan was paid out, your business made a negative re-declaration (i.e. a declaration of a negative amount) of the declaration on which the loan was based, the amount would be offset against the loan before the remaining amount was paid out.

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

If, after the loan was paid out, your business made a negative re-declaration (i.e. a declaration of a negative amount) of the declaration on which the loan was based, the amount would be offset against the loan before any payout of the remaining amount from the negative re-declaration.

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

We are ready to take your call on Mondays 9-17, Tuesdays, Wednesdays and Thursdays 9-16 and Fridays 9-14.

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 payment deadline of 10 June 2021 has been extended to 31 January 2022

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
27 September 2021 (extended from 10 May 2021) April 2021 10 May 2021
31 January 2022 (extended from 10 June 2021) 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 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 payment deadline of 30 JUne 2021 is extended to 17 January 2022

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
17 January 2022 (extended from 30 June 2021) June 2021 30 June 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.

Normally, the refund limit is maximum DKK 200,000 and we do not grant dispensation to increase the limit. Due to the extraordinary COVID-19 situation, the refund limit may, however, be increased temporarily to DKK 100 billion.

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 May 2023.
  • 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 May 2023.
  • If your business still wants a refund limit after 1 May 2023, 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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