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Factsheet for measure DK-2020-12/627 Updated – measures in Denmark

Extended deadlines for tax payments

Forlængelse af betalingsfrister for moms og a-skat

Country Denmark , applies nationwide
Time period Temporary, 17 March 2020 – 31 December 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Deferral of payments or liabilities
Author Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research) and Eurofound
Measure added 15 April 2020 (updated 20 January 2022)

Background information

On March 17, 2020, the Government, together with a unanimous Parliament, passed a bill aimed at keeping a close eye on Danish business and Danish employees, so as to ease the pressure on the liquidity of Danish companies. As a result of the Government’s aid packages for businesses, certain deadlines for A-tax, labour market contributions, VAT, on-account tax and the tax return have been extended.

The legal reference for the bill is "LOV nr 211"

Content of measure

The following amendments have been adopted:

Companies' payment deadline for included A-tax and labour market contributions is postponed for the settlement months of April, May and June 2020 by 4 months (only the payment deadlines apply from 30 April to 10 July 2020).

B-tax for April and May 2020 will also postpone the payment deadline, so payment must be made on June 22, 2020 and December 21, 2020 respectively.

In addition, the payment deadline for companies that pay VAT monthly is postponed by 30 days for 3 months (March, April and May 2020). That is, the deadline of 27 April 2020 is postponed to 25 May 2020, the deadline of 25 May 2020 is postponed to 25 June 2020 and the deadline of 25 June 2020 is postponed to 27 July 2020.

For companies that pay VAT on a quarterly basis, the first and second quarters of 2020 will be combined, so that the payment deadline will be 1 September 2020 for both quarters. For companies that pay VAT on a semi-annual basis, the first and second half years are combined, so that the payment deadline becomes 1 March 2021 for both half-years. You must report each period on its own reporting.

Finally, companies will be allowed to have a balance of up to DKK 10 million. DKK on the Tax Account for a temporary period if the companies on March 25, 2020 or later adjust the amount limit.

Updates

The following updates to this measure have been made after it came into effect.

15 June 2020

On the 15 June 2020 it was contracted to extend to deadlines for tax payments even further. The new deadlines are as follows:

For large enterprises, the following deferral of the payment deadline applies:

  • August: from 31 August 2020 to 15 January 2021
  • September: from 30 September 2020 to 16 March 2021
  • October: from 30 October 2020 to 17 May 2021
  • May: May 31st, 2021, until October 15th, 2021
  • June: June 30th, 2021, until January 17th, 2022

For SMEs, the following deferral of the payment period applies:

  • August: from 10 September 2020 to 29 January 2021
  • September: from 12 October 2020 to 31 March 2021
  • October: from 10 November 2020 to 31 May 2021

The original deposit deadline changed from: * April: 10 May 2021 until 27 September 2021 * May: 10 June 2021, until 31 January 2022

Reporting deadlines do not change.

The new deadlines will, therefore, mean that companies will have to pay double tax in January, March, and May.

Use of measure

Unknown.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

No involvement.

Views and reactions

Unknown.

Sources

Citation

Eurofound (2020), Extended deadlines for tax payments, measure DK-2020-12/627 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-2020-12_627.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.