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VAT Payment deadlines extended

Unofficial translation

Payment deadlines extended: More than $ 100 billion DKK in extra liquidity for the companies

The government will phase in payment deadlines on A-tax, AM contributions and VAT more slowly than planned. This is done to improve corporate liquidity during the corona crisis and secure Danish jobs. At the same time, the government is proposing a number of easements for foreign Danes, expatriates and persons on the research tax scheme.

Danish companies must return more easily to the normal payment deadlines for A-tax, VAT and labor market contributions than was otherwise planned.

The new hand must help ensure that Danish businesses and employees come as safely as possible through the current economic crisis.

“It is crucial for the government that our companies and employees have the best conditions to get through the crisis. As it is now, companies will soon have to return to the old payment deadlines in one go. It could hit them hard on liquidity. Therefore, we propose to phase in the normal payment deadlines more slowly, so that companies will have better time to adapt, ”says Finance Minister Morten Bødskov.

The economic expert group set up by the government yesterday suggested a more lenient return to normal payment deadlines for A-tax, unemployment benefit and VAT, and this is fully supported by the government.

With the proposal, Danish companies can look forward to postponing payment deadlines for A-tax and labor market contributions for August, September and October respectively. 4½, 5½ and 6½ months, while the extended payment deadlines for large companies’ VAT are deferred by 15 days for the July settlement and 7 days for the August settlement. In addition, the VAT periods for the third and fourth quarters for medium-sized companies will be added, thereby delaying the payment deadline until 1 March 2021.

Postponing the payment deadline for A-tax and labor market contributions strengthens companies’ liquidity by up to approx. 74 billion DKK on average 5½ months. For VAT, deferral of payment deadlines is estimated to strengthen the liquidity of the major businesses by approx. 32.5 billion DKK for 15 and 7 days respectively. The liquidity of medium-sized companies is estimated to be strengthened by approx. 18 billion DKK for 90 days.

Expatriate Danes, expatriates and people on the research tax scheme get a helping hand

At the same time, the government wants to help expatriate Danes, expatriates and people on the research tax scheme, who feel that the restrictions imposed to curb the spread of the coronavirus have placed restrictions on where a person can live and where a job can be performed.

Therefore, the government now proposes to relax the rules.

“Due to the corona crisis, a large number of foreign Danes, expatriates and persons on the research tax scheme are currently in an uncertain tax situation. That is why I am pleased that we have found a solution that relaxes the rules and creates greater security for the taxation of the special groups. I hope this will create greater security for the individual until we have reopened Denmark, ”says Morten Bødskov.

The measures ease the requirements for the taxation of the special groups from 9 March to 30 June 2020.

Read more in the fact sheet below:
Easier return to normal payment deadlines for A-tax, AM-contributions and VAT Temporary relief for special groups (foreigners, expatriates and persons on the research tax scheme

 

 

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