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In order to ease the pressure on the liquidity of small, medium-sized and large undertakings in connection with the outbreak of the Coronavirus (COVID-19), Danish Parliament has adopted a bailout package, which includes, among other things, an extension of the deadlines for the payment of VAT and PAYE tax:
The deadline for large companies’ payment of VAT is extended by 30 days for March, April and May 2020:
|
Applicable rules |
Deferred payment |
||
|
Tax period |
Deadline for payment |
Tax period |
Deadline for payment |
|
1 March – 31 March |
27 April |
1 March – 31 March |
25 May |
|
1 April – 30 April |
25 May |
1 April – 30 April |
25 June |
|
1 May – 31 May |
25 June |
1 May – 31 May |
27 July |
Large companies are undertakings with orders subject to VAT exceeding DKK 50 million annually.
Medium-sized undertakings’ deadline for payment of VAT for Q1 2020 is extended from 2 June to 1 September 2020, which is also the due date for the settlement of VAT for Q2 2020:
| Period of settlement | Original reporting deadline | New deferred payment deadline |
| 1 January – 31 March 2020 | 2 June 2020 | 1 September 2020 |
| 1 April – 30 June 2020 | 1 September 2020 | Payment for both periods on 1 September 2020 |
Medium-sized undertakings are undertakings with total orders subject to VAT exceeding DKK 5m but not exceeding DKK 50m.
Small undertakings’ payment deadline for settling VAT for H1 2020 is extended from 1 September 2020 to 1 March 2021, which is also the due date for settling VAT for H2 2020.
| Period of settlement | Original reporting deadline | New deferred payment deadline |
| 1 January – 30 March 2020 | 1. September 2020 | 1. March 2021 |
| 1 July – 31 December 2020 | 1 March 2021 | Payment for both periods on 1 March 2021 |
Small undertakings are undertakings with orders subject to VAT of DKK 5m or less annually.
It is still possible to report after the expiry of the tax period and thus obtain payment of negative VAT liability under the applicable rules for the payment of negative VAT liability.
The deadlines for the payment of retained PAYE tax and labour market contributions are extended by 4 months for April, May and June 2020:
|
Small and medium-sized undertakings |
Large companies |
|||
|
Applicable rules |
Deferred payment |
Applicable rules |
Deferred payment |
|
|
April rate |
11 May |
10 September |
30 April |
31 August |
|
May rate |
10 June |
12 October |
29 May |
30 September |
|
June rate |
10 July |
10 November |
30 June |
30 October |
Large companies are undertakings covered by section 2(6) of the Danish Act on the Collection of Taxes and Dues.
No changes are made to the deadlines for reporting retained PAYE tax and labour market contributions, which must still take place according to the applicable rules.
Extension of the deadlines for paying B-tax and provisional labour market contributions
The deadlines for payment of B-tax and provisional labour market contributions are extended for the months of April and May 2020:
In the months of June and December payment of B-tax or provisional labour market contributions must be made under the general rules.
In addition, a temporary increase to DKK 10 million of the maximum that undertakings are allowed to hold in the tax account is introduced. Today, undertakings are as a maximum allowed to hold DKK 200,000 in the tax account.
The aim is to ward off the negative effects, which the extension of the deadlines may trigger in the form of negative interest, since the extension of the deadlines imply that the undertakings may have large bank deposits.
In order to avoid negative interest, undertakings may pay up to DKK 10 million into the tax account.
The new amount limit will apply for the period from 25 March 2020 up to and including 30 November 2020.
The amount limited must be actively adjusted for the undertaking in question.