Everyday we are seeing efforts to stimulate Danish economy while maintaining the spread of Covid-19 to a level where the health sector can manage.
Postponed payment of withholding taxes (payroll)
For April, May and June the ordinary payment deadlines for withholding taxes have been postponed by three months.
Q1: Is any active action necessary to obtain the postponement?
A1: No, the payment deadlines are postponed automatically.
Q2: Should my payroll or finance department change their normal activities?
A2: If your system operates automatic or vendor payments, you should make sure to incorporate the new payment deadlines to ensure that the cashflow stays in the company.
Q3: What if we are financially sound and want to pay the withholding tax?
A3: The limit for how much balance can be kept in the tax account has been raised from DKK 200.000 to DKK 10.000.000 (see below).
Q4: Is withholding taxes for hydrocarbon tax affected as well?
A4: No, the postponement does not account for hydrocarbon tax.
Tax Account (“Skattekonto”) payout balance lifted to DKK 10.000.000 without negative interest
The Danish tax account ordinarily has a maximum of DKK 200.000 on how much positive balance can sit in the account without automatic repayment. As a part of the measures the balance has been lifted to DKK 10.000.000 to avoid repayment for those, who still wish to make payments.
Q1: Should we adjust the level on the tax account ourselves?
A1: From the legislation it seems that it will be the companies, who will need to actively change the balance, but we will keep track of this.
Q2: For how long will the new level be in force?
A2: Until 30th November 2020 at which point we expect the level to self-adjust to zero.
Q3: What if we have paid, but now need the money back (ahead of the deadline)?
A3: You can adjust the limit and the balance above the limit will be refunded to the companies tax account.
Q4: What if we want to pay more than DKK 10.000.000?
A4: It is possible to specifically request a payout stop – use the contact formular in the tax folder of the company.
Q5: What if we want to pay more than DKK 10.000.000?
A5: It is not possible to specifically request a payout stop since this has been suspended under the temporary measures. Therefore, DKK 10.000.000 will be the limit and any amount above will be automatically refunded.
If you have any questions or comments to the above, please let us know.
Link to legislation (also includes measures relating to VAT)
Contact
[pirate_forms]
