Taxes and Accounting in Denmark
- 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
- 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 , The Danish Institute of Certified Public Accountants
(Association of Registered Accountants (in English).
FSR, Foreningen af Statsautoriserede Revisorer , Association of Chartered Accountants (in Danish only)
- 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
- Nature of the Tax
- Moms (in Danish) = VAT
- Tax Rate
- Reduced Tax Rate
- Other Consumption Taxes
- Various excise taxes apply in Denmark.
- Company Tax
- 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.
|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% to be reduced to 27% in 2012, Interest: 30%, Royalties: 30%.
Dividends received from a subsidiary are basically exempt from tax if the parent company owns 10% or more of the share capital
- National Organizations
- The Committee of Normalization and Metrology is the body working out the laws of standardization and approval in Denmark. Consult also the Copyright Division. The purpose is to harmonize these standards with the European ones. The standard ISO 9000 is a factor of competitiveness, although it is optional.
- Regional Organizations
- European Patent office
- International Membership
Member of the
WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
National Regulation and International Agreements
|Type of property and law||Validity||International Agreements Signed|
The Consolidate Patents Act; Publication of the Patents Act, cf. Consolidated Act No. 366 of June 9, 1998 as amended by Act No. 412 of May 31, 2000).
|| Patent Cooperation Treaty (PCT)
Strasbourg agreement Concerning the International Patent Classification
|10 years|| Trademark law treaty
Protocol relating to the Madrid Agreement
The Danish Designs Act 1970 (Act No. 218 of 27th May 1970)
|5 years renewable twice|
Consolidated Act No. 763 of June 30, 2006 on Copyright
|5 years|| Berne convention
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
- Independence of Justice
- Equal Treatment of Nationals and Foreigners
- Denmark is ruled by law. Foreign nationals can expect a fair trial from the country's judicial system. Denmark is one of the least corrupt nations in the world.
- The Language of Justice
- Danish, but English is the predominant second language.
- Recourse to an Interpreter
- It is possible to have an interpreter.
- Sources of the Law and Legal Similarities
- The main source of the law is the constitution of 1849 which went through a major overhaul in 1953. The legal system is based on the civil law system and the judicial review of various legislative acts. Denmark accepts compulsory ICJ jurisdiction, with reservations. Denmark is a member of the European Union (EU), so the country's national law needs to comply with the Community legislation.
- Checking National Laws Online
Ministry of justice
- National Standards Organizations
Danish Standards Association
- Integration in the International Standards Network
- Denmark is a member of:
- The International Standard Organization (ISO);
- The Asia-Europe Meeting (ASEM).
- Classification of Standards
- All new EU standards must be approved as Danish standards and they get the title DS/EN. If a standard initially is international and gets the status of a EU and Danish standards then the title is DS/EN ISO. Like e.g. DS/EN ISO 9001 which is the standard for quality management.
- Online Consultation of Standards
- Publication of standards is entrusted by the Danish Standards Association. On their website you can see a complete list of standards.
- Certification Organizations
Danish Certification of Standards
- General Information
Danish culture and customs as seen by the Kwintessential website
Danish business culture as seen by the Kwintessential website
Danish business culture as seen by the Executiveplanet website
- Opening Hours and Days
- Business hours vary throughout Denmark. Opening times range from 8 to 10 a.m. and closing times from 3:30 to 5:30 p.m. Offices operate on a five-day schedule, which means that they are usually closed Saturday and Sunday.
|New Year's Day||January 1|
|Maundy Thursday||March - April|
|Good Friday||March - April|
|Easter Monday||March - April|
|Common Prayer Day||May|
|Ascension Day||May - June|
|Whit-Monday||May - June|
|Constitution Day||June 5|
|Christmas Eve & Day||December 24 & 25|
|Boxing Day||December 26|
Periods When Companies Usually Close
|Christmas||One week around Christmas|
|Easter||Some days around Easter|
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This report provides an overview of the EU’s Value Added Tax (VAT) rules and how these rules impact U.S. exporters of goods and services to the EU.
U.S. Commercial Service France on 31 Aug 2012 related to Taxes and Accounting in Denmark
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