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PrimeGlobal member firm Martinsen discusses the temporary compensation scheme for self-employed people with up to ten full time employees in Denmark.

Because of Covid-19, the Government and the parties represented in the Danish Parliament (Folketinget) have agreed on a temporary compensation scheme for self-employed people with up to ten fulltime employees. 

The scheme offers compensation for reduced turnover for self-employed people.   

The agreement applies to self-employed people with small businesses and freelancers 

According to the scheme, self-employed people with small businesses who experience a reduction in turnover of more than 30% because of covid-19 may receive compensation. 

The compensation from the state is 75% of the lost turnover, with a maximum, however, of DKK 23,000 per month, corresponding to the salary compensation scheme for salaried employees in the three-party agreement. The compensation may amount to a maximum of DKK 46,000 per month if the self-employed person has a spouse who also works in the business.   

It will also be possible to get support from the scheme for self-employed people without a CVR number who have experienced a fall of 30% in the income which is not taxed at source. The self-employed person can receive 75% of the income not taxed at source, with a maximum, however, of DKK 23,000 per month.

The self-employed person or the person with a small business can only get compensation for a maximum of three months from 9 March 2020 to 9 June 2020. 

It is a condition that the business does not have more than ten fulltime employees. And it is a condition that the turnover has previously been more than DKK 15,000 per month on average. The compensation is taxable income. 

Clarification of the target group

· Business owners who own at least 25% of the business and who are working in the business.

· Registration in the CVR and CPR registers

A number of conditions must be met in order to receive compensation 

· In order to receive compensation, it is a requirement that the reporting of an expected loss of turnover is accompanied by a solemn declaration. The business owner must also provide reasons why the loss of turnover is caused by covid-19. 

· Subsequently, the business owner must document a loss of turnover of more than 30% for the compensation period stated compared with the average turnover during the past financial year. 

· The Danish Business Authority will order every business to get assistance from an auditor. 

How to apply for compensation?

The application for compensation must be digital, and everybody who meets the criteria of the scheme will receive compensation. The applications will not be processed on a first-come-first-served basis. 

The Danish Business Authority is making every effort to ensure that they can receive the first applications as soon as possible.  

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Martinsen was established in 1940. The firm has offices in the cities of Copenhagen, Aarhus, Esbjerg, Grindsted, Kolding, Törring, Vejen, Vejle, Odder and Skjern and the staff of 250 employees, including 29 state authorized public accountants. The size of Martinsen is so considerable that we are able to manage all types of tasks for any kind and size of company. At the same time, our firm is not too large, as we are still able to solve all tasks individually and in a close, personal co-operation with our clients. This ensures that the solutions are suited to the individual client's needs and wishes and, at the same time, fit the companies' size and trade line.

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