DOING BUSINESS IN DENMARK

Posted By Romain Ponsot on Oct 6, 1907 in Doing Business


Date de publication : 06-10-1907

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The following information are for the sole purpose  of providing a general overview of  the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.

 

Yes we tax in Denmark

 

Flash News

Public consultation launched on anti-tax avoidance measures.

A new system allowing immediate application of treaty withholding tax rates on dividends will be introduced.

Local tax advisors

No specific information on local tax advisors.

Useful Links

Ministry of Finance: Click here

Nordisk eTAx: Click here

VAT identification number within EU:

Permanent Establishment

Entities are considered for tax purposes to be resident in Denmark if their place of management & control is in Denmark.

For the definition of management & control, the place of day-to-day mandagement is decisive.

The place of residence is subject to the relevant provisions of any applicable double tax treaty, if any.

Corporate Income Tax

Regular CIT tax rate is 22%.

Non-taxable income includes the following :

  • Dividends (participation exemption)
  • Certain capital gains

Non deductible expenses includes the following:

  • Dividends
  • CIT and similar taxes
  • Late interest penalties related to payment of taxes

Carry forward : Yes, but some restrictions may apply

Carry back: No

No specific information on the assessment of the tax returns and payment of CIT.

Whithholding Taxes (payment to foreign companies)

The local tax rates in Denmark are the following, subject to the provisions of an applicable double tax treaty, if any.

There is no WHT on the profits paid from a branch to its foreign head office.

The general rate of WHT on dividends is 27%.

The general rate of WHT on interest is 0%. Except for certain interest paid to foreign related entities outside EU, which is 22%.

The general rate of WHT on Royalties is 22%.

No

No

Capital gains

Capital gains are taxed under the CIT of the company.

Note: in many cases capital gains are not taxable

VAT

The standard tax rate is 25%.

The following items are zero rate:

  • Intra EU supply of goods

Exempt items:

  • Insurance and reinsurance
  • Certain financial services
  • Transport of passengers

Non resident are entitled to obtain a refund.

No other specific information on Denmark.

Miscellaneous

The general statute of limitation is 4 years .

For transfer pricing matters the statute of limitation is 6 years.

Yes

Yes,

 

 

 

Do not hesitate to share your experience in Denmark with us in the comments below. Any comments are welcome !

 

Romain Ponsot

Romain est conseiller en fiscalité au sein d’un leader mondial du shipping. Grâce à son expertise tant en matière de TVA, fiscalité internationale, problématiques intragroupe qu’en matière de fiscalité des particuliers, Romain vous guidera au travers d’articles professionnels et humoristiques. 

Romain, poète dans l’âme, aime particulièrement le couscous et passe beaucoup de temps à glacer ses souliers. Profil LinkedIn
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