Compensation for loss of turnover during the COVID-19 pandemic

Compensation:

• 90% of an expected loss of turnover
• Full (100%) compensation for businesses with no turnover (and subject to lock-down)
• Up to max DKK 23,000 a month (or DKK 46,000 in case of a co-working spouse)
• Taxable compensation for each business owner

Requirements:

• Expected loss of turnover corresponding to at least 30% for the period 9 March to 8 July 2020 as compared with an average turnover in 2019
• Turnover of at least DKK 10,000 a month during the period up to the pandemic
• No more than 25 full-time equivalents
• The business must have been registered no later than 9 March 2020
• The business owner must have an ownership stake of at least 25% and must be working for the business
• The business owner’s personal income for 2020 may not exceed DKK 800,000
• Applies to all kinds of businesses

Application:

• A solemn declaration by the business owner
• Statement showing expected loss of turnover
• Reason for loss of turnover as a result of the Covid-19 pandemic
• Applications to be filed as of 1 April 2020. Please note that compensation is not based on a first-come, first-served principle
• Businesses which have already filed an application for the rescue package (v1) must file another application for an extended period of compensation. Applications for an increase from 75% to 90% may be filed with retroactive effect. Alternatively, the compensation may be increased in connection with a subsequent review. The new scheme becomes effective in mid-May 2020.

Subsequent actions:

• Documentation of a loss of turnover accounting for at least 30%
• Audit assistance may be required
• If the conditions are not fulfilled, the compensation may have to be repaid

Contact:

Valby: +45 33 45 10 00 | Odense: +45 66 13 07 30 | Mail: info@bakertilly.dk

Q&A (updated on 31 March 2020)

1:

Q: Does the compensation for a loss of turnover apply to both personal businesses and companies?

A: The compensation applies to both businesses and companies.

2.

Q: Is the principal shareholder covered?

A: The businesses in question are comparable to self-employed people who are not covered by wage or salary compensation.

3.

Q: The business must provide proof of having realised a turnover in the amount of DKK 10,000 during the preceding period. Which period is that?

A: Generally, the average of preceding income years. Yet based on arguments, another period lasting for at least one month may be selected and there must be evidence of the turnover realised.

4.

Q: How is the turnover to be assessed?

A: The assessment of the turnover must be based on the general accounting practice of the business.