We offer the following services:
- Book-keeping
- Preparation and submission of VAT returns
- Preparation of accounts
- Registration of new businesses for tax and VAT
- Completion and filing of online company tax returns
- Provision of payroll services
- Completion and filing of employment contracts
- Tax advice for small/medium sized businesses and individuals
- Resident and non-resident tax advice
BUSINESS SETUP
There are two main forms of company to incorporate in Denmark:
- Public Limited Company – Aktieselskab (A/S)
- Private Limited Company – Anpartsselskab (ApS)
Public Limited Company – Aktieselskab (A/S)
This type of company requires three directors and a manager, all to be EU citizens. The minimum share capital amount is roughly €67,000. Annually audited accounts should be filed.
Private Limited Company – Anpartsselskab (ApS)
For an ApS there are no requirements for the directors or managers to be Danish citizens. The minimum share capital amount is roughly €10,750. Annual accounts audited by registered auditor should be filed.
MAIN TAXES IN DENMARK
The main types of taxation in Denmark are:
- Corporation Tax
- Personal Income Tax
Other types of tax such as Withholding Tax may be applicable.
CORPORATION TAX
This applies to both Public and Private Limited Companies and at a rate of 22%.
The on-account tax scheme calculates payments of Corporation Tax from half of the company’s average tax from the previous three years.
Tax payments must be completed on the 20th March and 20th November each year.
PERSONAL INCOME TAX
This applies to the global income of all Danish residents and the Danish income of non-residents.
Income is taxed in relation to various metrics, and goes towards several separate services. Income between KK 42,900 to DKK 421,000 is taxed at 5.83%, while income above DKK 422,000 is taxed at 20.83%.
However, the total level of gross income tax can reach up to 51.5% following health and municipal taxes. The trade-off is the quality of life in Denmark, which is considered to be extremely high.
Ultimately Danish Personal Income Tax is extremely complex, and should be discussed in detail with an accountant.
VAT
A company is required to register for VAT with the Danish Commerce and Companies Agency if its annual turnover exceeds DKK 50,000.
Once registered, businesses must charge customers VAT on the sale of all goods and services and pay the tax on their own purchases at a rate of 25%.
VAT payments and returns must be submitted periodically – deadlines vary depending on the annual turnover of the company.
WITHHOLDING TAX
Royalties paid to non-residents and interest paid to some foreign entities qualifies for 25% Withholding Tax. Dividends paid to non-residents through subsidiary or group shares and general interest to non-residents are exempt.
Useful Links
Danish Tax and Customs:
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