Denmark Taxation

Denmark’s tax rate below OECD and EU level

Establishing a Company in Denmark
Denmark – Advantages
Types of Legal Entities in Denmark
Corporate Taxation
Denmark Limited Liability Company K/S Companies

With a corporate tax rate of 22% and a unique no double taxation rule, Denmark offers a favourable tax climate with a corporate rate below OECD average plus attractive tax rules for expats – ideal for a Scandinavian headquarters and for Nordic expansion.

Danish system aims to create an attractive tax climate for businesses, an extensive network of tax treaties, and attractive tax rules for expatriates.

Other tax incentives include full deduction of patents and expertise in the year of acquisition and deduction of R&D expenses when such expenses are incurred.

Furthermore, a special taxation scheme is available for high salaried expats. The scheme enables the expat to pay a reduced income tax of 27 % for up to 7 years.

Key tax advantages:

Corporate tax rate of 22%.
Full tax rebate of R&D expenses.
Full tax rebate of interest arising from acquisitions.
Corporate tax is paid after deduction of expenses.
No double taxation for Danish companies with branches abroad.
No additional local tax, franchise tax or net wealth tax.
No capital duty or share transfer duty.
Unlimited loss carry forward.
Attractive holding company tax scheme.
Special expat tax scheme for foreign researchers and key employees.
Employer-funded employee benefit costs are the lowest in Europe.

The Danish Welfare System

The Danish welfare state is, among other things, based on the concept of citizens having equal access to the different services paid for by taxes. This makes Denmark a great place to live, work and do business.

Key features include:

Free assistance in case of unemployment or illness.
Free access to healthcare and medical treatment.
School duty and free education.
Free access to information and guidance, e.g. from libraries and media.

Danish tax and VAT

When you run a registered business, you have to make annual accounts and report VAT every quarter.

VAT registered companies have to submit their VAT accounting to the tax office while limited companies are also required submit their annual report to the Danish Business Authority.

VAT

VAT or moms in Danish is an indirect tax that you collect from your customers and send to the tax office. As a VAT registered company, you can also receive VAT (25%) from the stuff that you pay for your company that have VAT on the invoice.

If you have a turnover of less than DKK 50,000 in 12 months, you do not need to be a registered VAT company and get a CVR number. You can bill your customers for your services based on your CPR number.

TBA Services

TBA provides effective and individualized corporate services. We can help you to manage your Danish company’s statutory secretarial needs and assist in securing your company´s compliance with legal and administrative requirements in Denmark.

TBA can act as your single point of contact in Denmark, coordinating the correspondence between the auditors, lawyers, authorities and financial institutions etc.

We can provide you with all administrative services such as:

Business name registration
Maintenance of statutory registers and other formal documentation
Registered office address/ Domiciliation and keeping of mandatory company files
Opening bank accounts
Bookkeeping
Annual Reports
Payroll administration
Preparation, attending and/or drafting minutes of annual general meetings, board meetings and other meetings
Preparation and execution of resolutions
Preparation and filing forms for any changes in your company
Handling all incoming and outgoing correspondence
General corporate/legal assistance
Ad hoc tasks