With Covid-19 a lot of measures have been into place to safeguard the cashflow of businesses and keep them going. We are now clsoing in on the end of these measures, which means that a number of the cashflow extensions provided will come to a stop and require the payment, which was postponed. We are hightlighting a few of the major events that will impact the cashflow of Danish businesses in the near future along with 2021 as a whole.
Withholding tax and labour market contribution
From November the reporting and payment deadlines are back to “normal”. This means that large companies are required to report and pay by the end of the month, while small companies are required to report and pay in the following month (typically on the tenth). Be aware that in January, March and May of 2021 there will be multiple payment sof withholding tax as August, September and October of 2020 will be payable.
Tax account maximum
The current tax account maximum is possible to set at DKK 100.000.000.000. Effectively, the level controls when a surplus amount is paid to the company. With a limit of e.g. DKK 25.000.000 only amount above DKK 25.000.000 will be transferred automatically to the company. The temporary increase of the tax account came as part of the postponement of withholding taxes, VAT-postponement etc. to accomodate companies with little or no need for cashflow stimulus.
The current limit range will only be in function until 1st April 2021 after which the previous limit of DKK 200.000 will be reinstored. This means that surplus liqvidity sitiing in the account (if any) should be considered and there should also be kept an eye out for the administration of payments going forward as no amounts will be kept in the account unless there able to be used against a booked expense within 10 days.
Holiday reporting and payment (interim holiday)
The interim holiday period (1st September 2019 – 31st August 2020) must be finally reported by the end of December 2020.
The liability will every year be adjusted if the events for payout for an employee happens. The company will be notified in July 2021 (and every July following years) of how many of the interim funds that are required for payment and a choice to determine how many of the remaining funds they wish keep or pay to the Fund.
The deadline for notifying the Fund about the wish to keep the remaining funds is 31st August (and will continue to be going forward).
The deadline for payment will be 1st September.
VAT loan backpayment
If your company has requested and received the VAT loan, the deadline for the repayment is 1st November 2021. The payment will be requested and booked via the tax account.
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