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Daily Tax Report: International

Denmark Extends Business Aid to Increase Spending By $15 Billion

April 18, 2020, 4:06 PM

Denmark extended the duration of its aid programs to businesses and workers and added some new measures to increase spending by about 100 billion kroner ($15 billion).

The government agreed with all parties in parliament to keep aid measures available until July 8, a month longer than previously planned, according to a statement on Saturday. Companies will now be able to get back some value added tax (VAT) payments they made last year as zero-interest loans.

The government also said that companies which pay out dividends, buy back own shares or are registered in tax havens won’t be eligible for any of the aid programs, which now amount to a total of 400 billion kroner, when including loans and guarantees.

Finance Minister Nicolai Wammen said in an interview with broadcaster TV2, that Denmark, which is rated AAA, plans to finance new measures partially by issuing government bonds.

“We have a stronger position than many other countries and we are able to borrow money to get through this situation in the best way possible,” Wammen said.

Denmark is among the first countries in Europe to slowly end its lockdown. On Wednesday schools reopened for the youngest students and on Monday small businesses like hairdressers and dentists will be able to open for customers again.

Read more: Lockdown Ends for Youngest Danes Amid ‘Lab Rat’ Controversy

To contact the reporter on this story:
Morten Buttler in Copenhagen at mbuttler@bloomberg.net

To contact the editor responsible for this story:
Christian Wienberg at cwienberg@bloomberg.net

© 2020 Bloomberg L.P. All rights reserved. Used with permission.

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