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Denmark levies withholding taxes on the following outbound payments:
Basically, a foreign parent company has four different models for improving the financial basis of a Danish subsdiariy:Guarantee for the subsidiary’s debtLoan to the subsidiaryCapital contribution without issue of sharesCapital contribution against issue of shares.
Danish employers must - like employers in other countries - pay social security contributions for their employees. However, compared to most other countries, the Danish contributions are quite modest with average contributions of approximately EUR 2,000 per year per full-time employee.
Subsistence allowances are amounts paid to cover the cost of food, accommodation and minor necessities in connection with business travels. Subsistence allowances can be paid tax-exempt, provided certain conditions are met. If these conditions are not met, however, a tax is levied on the...
It is easy to set up a business in Denmark. Low taxes for corporations and expatriates make Denmark an attractive location for foreign companies to set up a business. However, before starting a business in Denmark, there are a number of practical issues to consider, which we’ll outline below.
Many Danish businesses hire foreign labour, but Danish tax is rarely withheld from the payment. The reason is that labour in most cases is hired through foreign businesses who often also receive the payment.
Denmark offers a special tax regime to highly paid inbound expatriates and researchers recruited from abroad.
A foreign investor may invest directly in real estate in Denmark or through a Danish company. A direct investment involves that the foreign investor becomes liable to tax to Denmark but limited to income related to the investment
In general, annual corporation tax returns must be filed no later than six months after the end of the financial year and by 1 September after the end of the financial year at the latest.