State aid: Commission approves €23 million Danish tax deferral schemes to support SMEs affected by coronavirus outbreak
The European Commission allows the Danish government to grant an interest-free credit facility to SMEs for their value added tax (VAT) payments. Similarly, the new scheme aims to ease the liquidity constraints of only medium-sized enterprises and will be granted as an interest-free credit facility for VAT payments due by beneficiaries in June 2021.
The European Commission has found the modification of an existing Danish wage tax deferral scheme for small and medium-sized enterprises (SMEs), as well as a new approximately €15.4 million (DKK 115 million) tax deferral scheme for medium-sized enterprises affected by the coronavirus outbreak, to be in line with the State aid Temporary Framework. The existing scheme was approved by the Commission in January 2021 (SA.61233). Denmark notified an increase of approximately €7.6 million (DKK 57 million) in the budget of the scheme, from €4 million (DKK 30 million) to approximately €11.6 million (DKK 87 million). With regard to the new scheme, the public support will take the form of an interest-free credit facility concerning the payment of value added tax (VAT) due by beneficiaries in June 2021 (i.e. the VAT due for the first quarter of 2020). Small undertakings are not covered by the scheme as they have no VAT liabilities in June 2021. The aim of both the modified measure and the new one is to ease the liquidity constraints faced by those SMEs that have been severely affected by the economic impact of the coronavirus outbreak, helping them to continue their activities.
Source ec.europa.eu
