Opdated 1 April 2020
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 8 July 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 10,000 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.