March 2020.

At least there is something positive coming out of the Corona pandemic: the economic incentives, which the government has hurriedly passed on the 17^th of March 2020.

The purpose of the “express law” is to ease the 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 of up to 4 months for personal tax payments on income and labour market contribution in April, May, and June. Personal tax on income and labour market contributions should be registered as usual.

For SME companies:

• Deadline payment of the 11^th May is the 10^th September 2020
• Deadline payment of the 10^th June is the 12^th October 2020
• Deadline payment of the 10^th July is the 10^th November 2020

For large companies:

• Deadline payment of the 30^th April is the 31^st August 2020
• Deadline payment of the 29^th May is the 30^th September 2020
• Deadline payment of the 30^th June is the 30^th October 2020

VAT payments

SME companies can postpone the VAT payments (3 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 1^st March 2021.
•  The deadline for VAT payment in January- March 2020 is extended to the 1st of September 2020, the same day as the VAT payment of April- June 2020.

Large companies have VAT payments extended one month later than the usual deadline.

Preliminary corporation tax (acontoskat)

If the company experiences significantly reduced corporate income in 2020, the preliminary corporation tax can be adjusted on Skat’s website: TastSelv Erhverv > Selskaber > Acontoskat.

Although companies have prolonged payment deadlines, tax registration on personal income, labour market contribution, and VAT should be done as usual. The registration of VAT is especially important if the company has a VAT credit, which is used to receive the tax credit payout.

Taxation is only one method of several possible economic relief measures. There are talks about labour cost subsidies and compensation for loss of business, among others, in the government.