Taxes - Accounting

Denmark

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Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: Moms (in Danish) = VAT
Tax rate: 25%
Reduced tax rate: None.
Other consumption taxes: Various excise taxes apply in Denmark.
Denmark has introduced a fat tax in 2011. The new tax is imposed on food containing more than 2.3% saturated fat, such as in butter, oil and processed food.

Corporate taxes

Tax rate

Corporate tax

25%

Tax rate for foreign companies: Resident companies are taxed on worldwide income, with foreign branches and foreign real estate of Danish companies exempted. Non-resident companies are taxed only on Danish-source income. A corporate entity is resident if it is registered in Denmark or if its place of management is in Denmark. The 28% tax rate applies to all forms of companies and branches.
Capital gains taxation: Capital gains are normally included in taxable income of companies. Long-term gains on shares are tax-free. Capital gains of individuals are taxed at 28% up to DKK 45,500 and 43% above.
Main allowable deductions and tax credit: For infomation on company deductions consult the Deloitte Tax guide
Other corporate taxes: Registration duty, Real property tax, Stamp duty.

Individual taxes

Tax rate

State income tax	From 3,76% up to 15%
Country and municipal taxes	From 22,8% to 27,8%
Progressive rates up to a maximum tax ceiling	51,5%

Allowable deductions and tax credit: There are several types of deductions or reductions applying to taxpayers. For further details concerning the nature of the deductions, contact the local tax authorities.
Special expatriate tax regime: 25% tax rate for the first 3 years in Denmark under specific conditions and for specific occupations.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the double Taxation Avoidance Treaties.
Withholding taxes: Dividends: 28%, Interest: 25%, Royalties: 25%.
Dividends received from a subsidiary are basically exempt from tax if the parent company owns 10% or more of the share capital
Bilateral agreement: Denmark and Tunisia are bound by a double taxation treaty: yes

Signed	Ratified	Enforced
05/02/1981	Law 81-32 of 15/04/81	28/05/1981

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: The Danish Ministry of Taxation; Customs Office website
Other domestic resources: Taxindenmark

Accounting Rules

Tax year

The fiscal year begins on January 1st and ends on December 31st of the same year.

Accounting standards

The accounting rules of the Scandinavian countries are very similar thanks to their closely related history and culture.
The relation between the accounting and the tax system is the same as in Germany.

Accounting regulation bodies

DASC

Accounting reports

Intangible assets can be booked in the Balance sheet or in expenses in the profit and loss account (choice of the company).
Physical fixed assets must be estimated at the original or production cost.
Current assets have to appear at the lower cost and value of the market.
Stocks are estimated with the weighed average cost or with the FIFO method.

For more information, consult the Statutory report on corporate governance by Novozymes.

Publication requirements

Law refers to the notion of "good accounting method" as regards the methods of companies for the elaboration of financial status.
All the companies of capital have to send a copy of their annual report to the legal authorities of the country. This annual report must contain a profit and loss account, a balance sheet and an annual report.

Professional accountancy bodies

FFR, Foreningen af Registrerede Revisorer
FSR, Foreningen af Statsautoriserede Revisorer

Certification and auditing

Companies audit are compulsory. Companies must be audited in accordance with the generally accepted auditing practice.

Accounting news

EIN Accounting news on Northern Europe