Interest according to section 21 of PAL from 20 February until date of payment
Interest must be paid on the amount in field 892 ‘Interest-bearing tax for the year’ based on the interest rate according to section 27(5) of PAL. The Tax Agency sets the interest rate once a year and publishes it in an SKM notification. The notifications are available at ‘skat.dk/jura -> Styresignaler m.v. -> Styresignaler og meddelelser’ (skat.dk/law -> Guidance notes etc. -> Guidance notes and notifications)
Interest must be paid from 20 February of the year following the income year up to and including the day before payment is made. If payment is not made by the final due date for payment, interest accrues according to section 27(5) of PAL only up to and including this date, after which point default interest will be calculated according to section 28 of PAL.
Tax due is subject to interest at the rate applicable to tax due, see section 27(5), sixth sentence, while overpaid tax is subject to interest at the rate applicable to overpaid tax, see section 27(5), fourth sentence.
Please note that the rate for overpaid tax is only applied in connection with the ordinary report, that is in cases where the amount paid on account exceeds the liability. The rate is not applied in connection with the reporting of corrections that result in a tax refund.
Field 896 is not filled in for overpaid tax. Overpaid tax carries interest up to the actual date of disbursement of the refund. The Tax Agency therefore calculates the interest in connection with the refund.
If amounts in the fields are corrected after pressing the interest calculation button in E-tax, the button must be pressed again to calculate the interest on the corrected amount.
Please note that the amount is the interest calculated in connection with the ordinary return for the income year in question.
The amount of interest is calculated on the PAL tax due that has not been paid on account no later than 19 February of the year following the income year.
Interest is calculated from 20 February of the year following the income year up to and including the day before payment is made.
Therefore, as a general rule, this amount must not be changed in connection with subsequent corrections.
Interest on amounts payable or refundable as a result of a reported correction accrues at a rate of interest according to section 27(5) of PAL and must be reported in field 720 or field 721 depending on whether the change concerns tax payable by the individual or tax payable by the provider.
The field is locked for changes in connection with the reporting of corrections. In case of an extraordinary need for changing the stated interest amount according to section 21 of PAL, the Tax Agency should be contacted.
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