Denmark gives businesses extra time to pay back coronavirus loans

A cross aisle majority in the Danish parliament has rubber stamped a deal allowing businesses extra time to repay money loaned from the state during the coronavirus crisis.

Denmark gives businesses extra time to pay back coronavirus loans
Danish tax minister Morten Bødskov. Photo: Martin Sylvest/Ritzau Scanpix

The agreement was confirmed by the Tax Ministry on Thursday.

“The government wishes to help those businesses which can be in a difficult situation now that loan repayments are due,” tax minister Morten Bødskov said in a press statement.

The ministry said that around 61,000 loans to companies paid out during the pandemic, totalling just under 22.5 billion kroner, will be now be encompassed by more lenient repayment terms.

The deadline for repayment has been extended to April 1st, 2022.

Additionally, an instalment option will allow companies to place their loans with tax authorities and pay them in instalments up to April 1st, 2024.

The instalment option will incur interest of 0.7 percent per month or 8.4 percent annually. That is to prevent unfair competition between the state and banks.

Parliament allowed businesses impacted by the coronavirus shutdowns to take loans by not paying VAT (moms in Danish).

The unpaid VAT then took the form of a loan on the business’ tax account.

The aim of this measure was to stop businesses from taking loans in order to pay their tax bills.

READ ALSO: More name changes, less immigration: The surprising (and unsurprising) stats from Denmark’s Covid-19 crisis

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members


READER QUESTION: Do Denmark’s residency rules allow you to take a side job?

A reader asked about what the rules are for taking a second side job if you have a work permit or residency permit in Denmark. Here are the rules.

READER QUESTION: Do Denmark's residency rules allow you to take a side job?

READER QUESTION: If I came in pre-Brexit on the grounds of self sufficiency, and I’m on a temporary residency permit, am I allowed to do a bit of self employed work to top my funds up?

For this reader, the rules are quite clear.

“A temporary residence permit granted according to the Withdrawal Agreement (Brexit) also includes the right to work in Denmark – even though the person has resided in Denmark on grounds of sufficient resources or as an economically inactive person,” the Agency for International Recruitment and Integration (SIRI), told The Local via email. 

But for other non-EU citizens, here under one of Denmark’s many job schemes, such as the Fast-track scheme, Pay limit scheme, and the Positive lists, or under the various researcher schemes, the rules are more complicated. 

READ ALSO: How can you get a work permit in Denmark if you are not an EU national?

You are generally allowed to get a second job, but you may have to apply for a separate work permit for paid sideline employment, (find information from SIRI here), and also fulfil various conditions. 

If you are a researcher with a permit under the Researcher scheme or the Researcher track under the Fast-track scheme, a Guest researcher, a PhD student, a performing artist or a professional athlete or coach, you are allowed to take up unlimited sideline employment without needing to apply for an additional work permit for sideline employment. 

If, however, you are employed as a researcher under the Pay Limit Scheme, then you have to apply for a special work permit for sideline employment.

People who received their residency permits under the Jobseeker scheme are not eligible for a sideline employment permit. 

For the other job schemes, you need to apply for a separate work permit for paid sideline employment, find information from SIRI here.

“For sideline employment, the salary must be the standard one for the job, and within the same area of ​​work as the main occupation,” SIRI said. 

For example, a musician might want a permit for sideline employment as an instructor at an academy of music, or a doctor might want a permit for sideline employment to teach at a medical school. 

You can be granted a sideline permit for as long as as the duration of your main work permit. 

If you lose your sideline job, you must inform SIRI. If you lose the main job that is the basis for your main work permit, your sideline job permit is automatically invalidated.