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Denmark: Parliament approves tax relief for Danish companies, response to coronavirus (COVID-19)

Denmark: Parliament approves tax relief

The Danish Parliament on 17 March 2020 passed legislation to provide assistance to Danish companies as they cope with the coronavirus (COVID-19) crisis. The legislation allows companies to defer payment of tax and value added tax (VAT) for a total of DKK 165 billion.

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With the legislation:

  • The payment deadline for “A-tax” and labor market contributions for April, May, and June 2020 is to be postponed by four months.
  • The payment of “B-tax” for self-employed persons for April is to be postponed from 20 April 2020 to 20 June 2020. Similarly, payment of B-tax for May 2020 is to be deferred from 20 May 2020 to 20 December 2020.
  • The payment deadline for VAT for monthly settlement companies is to be postponed by 30 days for March, April, and May 2020. The VAT period for the first and second quarters (Q1 and Q2) of 2020 must be stated 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 so that the negative response can be “paid out” (refunded). The VAT for the whole of 2020 must be stated by 1 March 2021. If the VAT liability for the first half of 2020 is negative, however, it is still possible to report the VAT for the first half by 1 September 2020 so that the negative response can be paid out.


Increased tax account

The current limit of DKK 200,000 in companies’ tax accounts has been increased to DKK 10 million. The new amount limit will be valid until 30 November 2020. Companies can themselves regulate the amount of the tax amount as the limit, but this can be set at a maximum amount of DKK 10 million, at the earliest on 25 March 2020.


Read a March 2020 report (Danish) prepared by the KPMG member firm in Denmark

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