Denmark Corporate Taxation
Denmark offers an advantageous tax environment with a corporate tax rate of 22% only, which is below the OECD and EU averages.
Coupled with its unique no double taxation rule, Denmark provides an appealing tax landscape. These advantages make it an ideal choice for establishing a Scandinavian headquarters and expanding into the Nordic region.
The Danish tax system is structured to create an attractive environment for businesses, offering an extensive network of tax treaties and favorable tax provisions for expatriates. Notable tax incentives include:
- Full deduction of patents and expertise in the year of acquisition.
- Deduction of R&D expenses when incurred.
Additionally, a special taxation scheme caters to high-salaried expatriates, enabling them to pay a reduced income tax rate of 27% for up to seven years.
Key Tax Benefits
Corporate tax rate of 22%.
Full tax rebate for R&D expenses.
Full tax rebate for interest arising from acquisitions.
Corporate tax paid after deduction of expenses.
No double taxation for Danish companies with overseas branches.
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, underpinned by the principle of equal access to publicly funded services, makes Denmark a highly desirable place to live, work, and conduct business. Key features include:
The Danish welfare system
The Danish welfare system, underpinned by the principle of equal access to publicly funded services, makes Denmark a highly desirable place to live, work, and conduct business. Key features include:
- Free assistance in cases of unemployment or illness.
- Free access to healthcare and medical treatment.
- Compulsory education with free schooling.
- Access to free information and guidance from sources like libraries and media.
Danish Tax and VAT
Running a registered business in Denmark involves maintaining annual accounts and quarterly VAT reporting. VAT-registered companies are required to submit their VAT accounting to the tax office, while limited companies must also provide their annual report to the Danish Business Authority.
VAT (Value Added Tax):
VAT, known as “moms” in Danish, is an indirect tax collected from customers and remitted to the tax office. VAT-registered companies can also recover VAT (25%) on expenses with VAT invoices. If a company has a turnover of less than DKK 50,000 in 12 months, it is not obligated to register as a VAT company and obtain a CVR number. Such companies can invoice customers for services using their CPR number.
Services
Our comprehensive administrative services include:
- Business name registration.
- Maintenance of statutory registers and formal documentation.
- Providing a registered office address, domiciliation, and securekeeping of mandatory company files.
- Assisting with the opening of bank accounts.
- Handling bookkeeping needs.
- Preparing annual reports.
- Managing payroll administration.
- Assisting in the preparation, attendance, and drafting of minutes for various corporate meetings.
- Preparing and executing resolutions.
- Completing and filing forms for any changes within the company.
- Managing incoming and outgoing correspondence.
- Providing general corporate and legal assistance.
- Addressing ad hoc tasks as required.
Our company licensing services
— What we do and do not do
Our company is EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to get duly and properly licensed with local Regulators and Financial Authorities to get respective official licenses to legally carry out their cryptocurrency or financial related business activities.
TBA & Associates Tax Business Advisors does not provide or carry out any sort of Cryptocurrency or Financial services!
Disclaimer: While TBA & Associates strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact TBA Customer Services for advice on your specific cases.
