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Denmark: Tax relief in response to coronavirus (COVID-19)

Denmark: Tax relief in response to coronavirus

The Danish government has taken initial steps regarding a tax relief package to mitigate certain effects of the coronavirus (COVID-19) epidemic—including a bill that would allow for the deferral of the payment deadlines for certain tax and labor-related contributions, as well as postponement of the declaration and payment deadlines for value added tax (VAT) and other taxes.

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A bill to provide tax relief measures was proposed 13 March 2020, and is expected to be considered, possibly within a few days. The purpose of the bill is to provide liquidity for the business community by postponing payment deadlines for taxes and labor contributions. The bill would not apply to the Faroe Islands and Greenland.

In summary, the measures in the bill would provide for:

  • A four-month deferral of payment deadlines for “A-tax” and labor-related contributions for liabilities arising during the months of April, May, and June 2020 (but no changes to the deadlines for reporting A-tax and labor contributions)
  • A one-month delay of the deadlines for the declaration and payment of VAT for certain entities (typically large companies) that are on the monthly reporting and paying basis (the declaration period will be the 25th day of the second month following the end of the tax period for the tax periods from March 2020 to May 2020)
  • A temporary increase the amount of credit balance in the tax account (the current limit of DKK 200,000 that the companies may have in the tax account, is proposed to be increased to DKK 10 million, until 30 November 2020)


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

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