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14.5. Interest and Penalties

Late Return Filing

Failure to file a tax return by the due date will result in a penalty equal to DKK 200 for each day of delay up to a maximum of DKK 5,000. An estimated assessment may also be made by the tax authorities.

Failure to submit a return with the intent of evading taxes will result in additional fines and potential imprisonment.

Late Tax Payment

Late advance tax payments are subject to an interest penalty at the rate of 0.5% per month.

The same interest penalty applies for outstanding tax due if not paid by 20 November.

COVID-19 Emergency Measures:

Denmark has provided an exemption from interest and penalty for labor-related contributions due in March 2020 but not paid as a result of COVID-19 pandemic. Taxpayers can apply for such exemption at the time of payment for the month of March.

It is clarified that the exemption for contributions is only applicable for the month of April, May, and June 2020.

Filing of an Incorrect Return

The filing of incorrect or misleading tax returns/statements will result in fines, or in serious cases, imprisonment.

In case of gross negligence, the penalty is 50% to 100% of the tax due, 100% in the case of fraud.