COVID-19

Compensation for corporate fixed expenses

As a company, you have the opportunity to apply for temporary compensation for your company's fixed expenses.

This applies, for example, to rent, interest expenses and contract-related expenses (e.g. leasing). The scheme covers expenses from March 9th to June 9th, 2020.

• The plan is still under preparation and must be finally adopted by the Parliament. Regularly check Virksomhedsguiden.dk for more information and time for opening applications.
• The compensation plan will apply from March 9th to June 9th, 2020. 
• The application process will be digital.
• The applications will not be processed after a first-come, first-served basis.
• Applications are not received until the plan is opened.

Can my company receive compensation?
All companies, regardless of industry, form of business, etc., can apply for compensation. In addition, you must meet the following requirements:

• You should expect your business to experience a fall in revenue of more than 40% due to coronavirus / covid-19.
• Your fixed expenses must amount to at least DKK 25,000 in the period from March 9th to June 9th, 2020.

My business is closed by injunction - do special conditions apply to me?
Yes.

• Businesses that are closed following an injunction will be compensated by 100% of the fixed costs during the injunction period.

What expenses can be covered?
You may be compensated for a proportion of your fixed expenses, including for example rent, interest expenses and contractual expenses (e.g. leasing). The percentage of fixed expenses depends on your expected turnover:

• Decrease 40-60%: Compensation 25%
• Decrease 60-80%: Compensation 50%
• Decrease 80-100%: Compensation 80%

In addition, if your application is accepted, you may receive 80% of your auditor's expense.

What happens if my revenue turns out bigger or smaller than I expected?
Then your compensation will be re-adjusted.
At the end of the period, the Danish Business Authority (Erhvervsstyrelsen) checks whether your revenue decline corresponds to what was expected.

For how long can I receive compensation?
You can receive compensation for up to three months between March 9th and June 9th, 2020.

How do I apply for compensation?
You submit an application to the Danish Business Authority (Erhvervsstyrelsen). The application will be digital.

Check Virksomhedsguiden.dk regularly for more information.

What should my application contain?
Check Virksomhedsguiden.dk regularly for more information.

This text above is a translation in English of the information published on this website: https://virksomhedsguiden.dk/erhvervsfremme/content/temaer/coronavirus_og_din_virksomhed/artikler/kompensation-for-virksomheders-faste-udgifter/668d7243-3b13-4b98-a35a-a61413490260/