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Denmark: Tax developments in response to COVID-19

General Information

This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).

The content will be updated regularly. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.

Date accurate as of: 2 December 2020

Tax payment deadlines

  • The payment deadline for “A-tax” and labor market contributions for August, September and October 2020 is postponed by four months (no changes to the deadlines for reporting A- tax and labor contributions).
  • After the postponement, the new deadlines are as follows:
  • SME: August: 29 January 2021 (postponed from 10 September 2020), September: 31 March 2021 (postponed from 12 October 2020), October: 31 May 2021 (postponed from 10 November 2020);
  • Large companies: August: 15 January 2021 (postponed from 31 August 2020), September: 16 March 2021 (postponed from 30 September 2020), October: 17 May 2021 (postponed from 30 October 2020).
  • The payment deadline of “B-tax” for self-employed persons for 20 May 2020 is postponed to 20 December 2020.

Disclosure deadline extensions

  • Changes regarding tax return filing deadline:
    • For companies that had year end in April 2020, the tax return filing deadline was originally in October 2020 for the 2020 income year. This deadline has been extended to 31 January 2021.

Company tax account (Skattekontoen)

The current limit of DKK 200,000 for companies' tax account balance increased to DKK 10 million on 17 March. On 30 April, the limit was further increased to DKK 100 billion. The increase to DKK 100 billion is in place in the period 7 May 2020 until 1 April 2021. Companies will have access to adjust and set the amount limit in their tax account. With the new increased limit, companies with excess liquidity will have an increased possibility to insert an amount on the Company tax account in order to avoid negative interest and at the same time ease the pressure on the public finances.to insert an unlimited amount on the Company tax account in order to avoid negative interest and at the same time ease the pressure on the public finances.

VAT payment deadlines

  • The reporting and payment deadline for companies subject to quarterly VAT reporting has been postponed from 1 December 2020 to 1 March 2021. Companies subject to quarterly VAT reporting on 1 March 2021 remains unchanged.
  • The reporting and payment deadline for companies subject to half-year VAT reporting has been postponed from 1 September 2020 to 1 March 2021. Companies subject to half-yearly VAT reporting on 1 March 2021 remains unchanged.  
  • No information about postponement for the reporting and payment deadline for companies subject to monthly VAT reporting. 
  • A possibility for some entities to apply for a non-interest bearing VAT loan has opened on 17 November. The loan can be applied for in the period 17 November 2020 – 18 December 2020 and should correspond to VAT payable for the latest VAT quarter/half year in 2020.

Temporary increase in R&D extra deduction

A bill has been proposed to increase the R&D deduction for companies to 130% for FY 2020 and 2021. The extra deduction is capped at a tax value of DKK 50M extra deduction. The means that the cap will be reached by companies having R&D costs of more than DKK 842M (2020) or DKK 909M (2021).

Additional Information