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The Danish Parliament adopts tax package and increases Danish companies' liquidity by approx. DKK 165 billion

The Danish Parliament adopts tax package

The Danish Parliament just passed an act on aid to Danish companies to help them best cope through the crisis caused by COVID-19. The act allows companies to defer tax and VAT payments at a total of DKK 165 billion.

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The Danish Parliament adopts business aid

On Tuesday, 17 March 2020, the Danish Parliament passed an act to help Danish companies best cope through the crisis caused by the coronavirus (COVID-19).

The act allows companies to defer tax and VAT payments at a total of DKK 165 billion.

Below is an overview of the specific initiatives 

A-tax and labour market contributions

The payment deadline for A-tax and labour market contributions for April, May and June is postponed by 4 months.

table 1

B-tax

Payment of B-tax for self-employed persons for April is deferred from 20 April to 20 June 2020.

Similarly, payment of B-Tax for May is deferred from 20 May to 20 December 2020.

VAT

The payment deadline for companies settling on a monthly basis is postponed by 30 days for March, April and May.

table-2

1The VAT period for Q1 and Q2 2020, i.e. VAT for these companies must be filed by 1 September 2020. However, if VAT liability for Q1 2020 is negative, it is still possible to report VAT for Q1 by 1 June 2020 to facilitate a refund of the negative VAT liability.

2The VAT period for the first and second half of 2020, i.e. VAT for entire 2020 must be filed by 1 March 2021. However, if the VAT liability for the first half of 2020 is negative, it is still possible to report the VAT for the first half by 1 September 2020 to facilitate a refund of the negative VAT liability.

Company tax account (Skattekontoen)

The current limit of DKK 200,000 for companies' tax account balance has been increased to DKK 10 million. The new amount limit will apply until and including 30 November 2020. Companies will have access to adjust and set the amount limit in their tax account; however, maximum amount will be DKK 10 million, and it will not be available before 25 March 2020 at the earliest. 

Do you want to know more?

If you have any questions to the above, you are more than welcome to contact our experts:

Partner in Corporate Tax Peter Rose Bjare 

Partner in Indirect Taxes Flemming Lind Johannsen

Director in Mobility & People Services Pernille Paisen 

© 2020 KPMG Acor Tax, a Danish limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

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