The purpose of this blog is to provide a reliable source of business, tax, and accounting information. English is chosen language to ensure coverage for Danish and non-Danish readers.
Corona relief: Extension of tax payments
At least there is something positive coming out of the corona pandemic: the economic incentives, which has been hurriedly passed by the government on the 17th of March 2020.
The purpose of the “express law” is to ease short-term cash flow burden on businesses, namely payments for personal tax (A and B-skat), labour market contribution, VAT payment, and preliminary corporation tax (acontoskat).
Personal tax and labour market contribution payments
All companies get a prolonged period up to 4 months for payments of personal tax on income and labour market contribution in April, May, and June. The registration of personal tax on income and labour market contribution should be made as usual.
For SME companies:
Deadline payment of the 11th May is the 10th September 2020
Deadline payment of the 10th June is the 12th October 2020
Deadline payment of the 10th July is the 10th November 2020
For large companies:
Deadline payment of the 30th April is the 31st August 2020
Deadline payment of the 29th May is the 30th September 2020
Deadline payment of the 30th June is the 30th October 2020
SME companies can postpone the VAT payments (3 months or 6 months) to the next payment deadline.
The deadline for VAT payment for January-June 2020 is extended to the VAT deadline for July- December 2020, which is the 1st March 2021.
The deadline for VAT payment in January-March 2020 is extended to the 1st September 2020, which is the same day for the VAT payment of the period April-June 2020.
Large companies have VAT payment extended one month later than the usual deadline.
Preliminary corporation tax (acontoskat)
If the company experiences a significant reduced corporate income of the year 2020, then the preliminary corporation tax can be adjusted by going on Skat’s website: TastSelv Erhverv > Selskaber > Acontoskat.
Although companies have payment deadlines prolonged, the registration of tax on personal income, labour market contribution, and VAT should be done as usual. The registration of VAT is especially important if the company has VAT credit, which is used to receive the tax credit pay out.
Taxation is only one method in several possible economic relief measures. There are talks about labour cost subsidy and compensation for loss of business, among others, in the government.