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Corona forces new ways of working
Ecovis Danmark´s top priority has always been to deliver superior service to our clients. To do that in the current environment, we are taking every precaution possible to protect the health and safety of our team and their families, given the ongoing coronavirus pandemic.

Therefore, in step with much of the rest of the country, a major part of our employees will be working remotely and only a few people will be present at the office. For now, our plan is to maintain remote work arrangements in the next two weeks. We will be monitoring the situation closely to determine if these arrangements need to be extended.

The good news is that our technological capability enables everyone on our team to work seamlessly from remote locations. During this period, we will be available to you as always. Your emails and phone calls will be answered as usual (well maybe not as quickly), and your Ecovis professionals will be working to meet your needs and deliverables in all the ways you have come to expect from us.

This extraordinary step is necessary to preserve the health of our team and help curtail the spread of the virus, while upholding our commitment to you, our clients.

On behalf of the entire Ecovis team, we want to thank you for your understanding and support during this challenging time.

Best regards,

ECOVIS Danmark
Kurt Bülow, Preben Pedersen, Bo Langtoft and Annette Svane


About Covid-19 Help Package
Information about some of the contents in Help Package regarding employees, payment of withhold taxes and VAT.

Help package in relation to employees, from the Prime ministers Press conference:
Private-sector workers with the threat of being fired hanging over their heads due to the corona crisis the state will reimburse/cover 75 percent of the salaries paid. The last part of the payroll companies must pay.

This is the result of the announced tripartite agreement between the government and the social partners, which has now fallen into place.

The echo of what we are doing now will be heard in the future. It is now that we are laying the groundwork so that companies and employees get the best through the crisis, says Prime Minister Mette Frederiksen (S) at a press conference in the Prime Minister's Office.

The scheme will apply retroactively from 9 March to 9 June.
It applies to companies that face having to fire at least 30 percent of employees or more than 50 employees. Conversely, companies undertake not to fire employees for financial reasons while receiving compensation from the state.
All parties contribute
With the agreement concluded between the government and employers 'and employees' organizations, a ceiling of DKK 23,000 has been laid, which is the maximum the state pays to salaried employees. For hourly paid workers, the state pays up to DKK 26,000 - here the salary compensation is up to 90 percent.

From the employees' point of view, each individual must give five vacation days - either vacation, or days off without pay - in order to receive salary compensation.
- Denmark is in an extraordinary situation. That is why I am pleased that we also have extraordinarily responsible companies, trade unions and employees, says Mette Frederiksen.
'Don't fire'
There have already been layoffs in the Danish labour market because of the corona crisis - and more are expected to be on the way.

The scheme, which is expected to cost the state 2.6 billion, should help to curb this, explains the prime minister with a message addressed to the needy companies:
- We have a great understanding that you want to send employees home, but do not fire them.

We must do everything we can to keep Danish business and employees as much out of the crisis as possible.
Hotels and restaurants
At the moment a bill with amendment to the law about compensation to employees are prepared for Hotels and Restaurants so the compensation in this sector will be 90 %, and should somehow be more flexible, but we do not have the details yet - expected to come tomorrow.
Reimbursement and self-employed sickness benefit
A bill about Expanded right for employer to reimbursement and for self-employed sickness benefit as a result of covid-19.

The bill proposes that employers be granted an extended right to reimbursement for wages or sickness benefits that are paid to employees who are absent because of covid-19. So far understood that reimbursement should be from day one of sickness from covid-19.

It is also proposed that self-employed persons receive an extended right to sickness benefits for absence due to covid-19.The purpose of the bill is to mitigate the negative financial consequences for employers as a result of the spread of covid-19.

It is proposed that the Bill come into effect retroactively with effect from 27 February 2020.

In the case of a temporary initiative because of covid-19, it is also proposed that the temporary rules introduced by the Bill be terminated on 1 January 2021.
News about deadlines for VAT and Employees taxes
Some news about deadlines for VAT and Employees taxes.

The parliament have relieved the following about Vat and employees taxes:
The content of the help package is divided between large companies and small and medium-sized companies:

Big companies

Does your company have am contributions of more than DKK 250,000 and / or A-tax of more than DKK 1 million per year? Year, it is a big business.

Small and medium-sized companies

Does your company have am-contributions of less than DKK 250,000 and / or A-tax of less than DKK 1 million per year? Year, it is a small business.

Deferral of A-tax and am-contribution
The deadlines for payment of am contributions and A-tax (payments for April, May and June) are temporarily extended by four months. This applies to all companies.

The importance of large companies
Deadlines for payment of am contribution and A tax:

The deadline of 30 April is moved to 31 August
The deadline of 29 May is moved to 30 September
The deadline 30 June is moved to 30 October
The importance of SMEs
Deadlines for payment of am contribution and A tax:

The deadline of May 11 will be moved to September 10
The deadline of June 10 will be moved to October 12
The deadline of 10 July will be moved to 10 November
Voluntary deposit of on account CIT tax
On March 20, companies will have to pay the 1st ordinary account tax for 2020.
If a company expects the income ratios to deviate significantly in 2020 from the basis for the ordinary on-account tax, the company itself can reduce the payment via TastSelv Business> Companies> On-account tax.

If voluntary on-account tax already has been reported for the first instalment, the company must contact the Tax Agency if the company wants to change it.
Change of payment deadline for VAT
The easing of VAT applies in the first instance to large companies.

The Ministry of Taxation is investigating whether the payment terms for VAT for small and medium-sized businesses can be relaxed. Importance for large companies by changing the payment deadline for VAT.

The deadline of April 27 will be moved to May 25.
The deadline of 25 May will be moved to 25 June.
The deadline of 25 June is moved to 27 July.

EU rules only allow you to postpone the payment deadline 30 days.
Now we also have the new rules for Small and Medium businesses:

Quarterly settlement companies
These companies are allowed - but not obliged - to collect the VAT liability for January and April quarters 2020 and declare and pay the VAT by September 1, 2020.
This means that the company is given an additional 3 months’ time limit to pay the VAT for the January quarter.

If the January quarter VAT liability is negative, the company does not have to wait to submit the VAT return for the period. It must be submitted as soon as you reach April 1st and must be processed by the Tax Agency in accordance with the normal rules for negative VAT liability.

Semi-Settlement Companies
These companies are allowed - but not obliged - to collect VAT liability for the whole of 2020 and to declare and pay VAT by March 1, 2021. This means that the company will have an additional 6 months to pay VAT for the first half of 2020.

The Danish Tax Agency states that no day-to-day interest is accrued as the payment deadline has been moved.
Consider changes to your Tax Account
The tax account gives you access to raise the payment limit, so that the company can have up to DKK 200,000 standing in the Tax account. The purpose of raising the limit is that the company thereby avoids getting the money back.

If the taxpayer wants to raise the payment limit on the Tax Account, you must raise it yourself in the Tax Account.

Political efforts are being made to raise the threshold further, so that companies that can pay up to the original deadlines have a substantial opportunity to do so without refunding the money to the taxpayer.
The Danish Tax Agency states that no day-to-day interest is accrued as the payment deadline has been moved.
Disclaimer
The information contained in this site/document is for general guidance on matters of interest only for the personal use of the reader. The impact of laws can vary widely based on the facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information contained in this site/document.

Accordingly, the information on this site/document is provided with the understanding that the Web site / document in it selves are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, you should consult an Ecovis professional.

While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, Ecovis is not responsible for any errors or omissions, or for the results obtained from the use of this information.
We wish you a great workday!
 
ECOVIS Danmark, Sct. Knudsgade 2, 2. sal, 4100 Ringsted | Vendersgade 28 st. th., København K 1363, Denmark

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