A large part of the country is now subject to further restrictions, and this means that a political agreement has been entered into to reopen the general aid packages from Spring for all companies in Denmark.
It applies that the compensation schemes run from and including 9 December 2020 for the companies located in the 38 municipalities, which were partially closed down per this date.
For other companies, compensation schemes run from 11 December 2020.
The following is based on the political agreements published on December 10, 2020. The agreements must be approved by the EU before we know the final possibilities and conditions for compensation, and the Danish Business Authority can open for applications.
The below mentioned compensation schemes will also cover the lockdown over Christmas.
Salary compensation
The general salary compensation scheme from last spring will be reintroduced throughout the country, at the same time as the scheme for companies that are prohibited from staying open also continues to apply.
The compensation will amount to 75% of the salary cost for employees on salaried employees' terms and 90% of the salary for non-salaried employees.
In both cases, there will be a ceiling of DKK 30,000 per month per full-time employee.
We expect that the guidelines and interpretations that applied in the original scheme will also apply to this compensation period.
The general salary compensation scheme will apply until the restrictions end, which is currently 3 January 2021.
For compulsorily closed companies, the salary compensation scheme can be applied as long as the company is forcibly closed. The compensation must be applied for on Virk.dk.
Fixed costs and loss of turnover for the self-employed
The general compensation schemes for fixed costs and for loss of turnover for the self-employed from Spring will be reintroduced throughout the country.
This means that the compensation scheme for fixed costs and the compensation scheme for the self-employed, etc. will be reopened.
The requirement for participating in the schemes is a reduction in turnover of 30 %.
The aid packages will be open to the whole country and thus not only to those municipalities where there are stricter restrictions right now.
We expect that the guidelines and interpretations that applied in the original schemes will also apply to this compensation period.
The general compensation schemes for fixed costs as well as loss of turnover for the self-employed will apply until the restrictions cease, which are currently 3 January 2021.
For foreclosed companies, the salary compensation scheme can be used as long as the company is forcibly closed.
The compensation must be applied for on Virk.dk, where guidance and executive orders will also be available.
The above article is taken from tax:watch, our electronic English newsletter on Danish Tax and VAT matters. tax:watch is issued on the last Friday of each month and is free of charge. Please sign up here.