Transfer Pricing rules in Denmark have changed many times over the last couple of years. It is now mandatory for larger companies in Denmark to submit Transfer Pricing documentation each year. It was required to prepare the Transfer Pricing documentation in the past, but it was only submitted within 60 days upon request from the tax office. Transfer Pricing should now always be submitted 60 days after the tax return deadline when exceeding certain thresholds. You can read more here: https://www.daniaaccounting.com/slider/transfer-pricing-rules-in-denmark-for-2023/

Audits of annual reports are not mandatory for most companies in Denmark. In general, larger limited liability companies need to be audited, and smaller companies do not need to be audited. The difference between “smaller” and “larger” is defined by thresholds for revenue, amount of employees and assets. However, new audit rules will be introduced in 2023. You can read more here: https://www.daniaaccounting.com/slider/audit-requirements-in-denmark-for-annual-reports-in-2023/

A budget isn’t just an expense-cutting tool; it can help you grow your business by providing you with the structure you need to make smart financial decisions. By creating a cash flow budget, you can get an accurate snapshot of where your business stands financially at any given time and use that information to make adjustments accordingly. You can read more here: https://www.daniaaccounting.com/slider/cash-flow-budget-and-why-having-one-matters-for-your-business/

When a limited liability company (in Denmark, most often ApS or A/S) fails to submit the annual report on time, the Danish Business Authority will request the Danish Maritime and Commercial High Court to dissolve the company after a while. We call this a compulsory dissolution. Sometimes, it is possible to reassume a company faced with a compulsory dissolution when specific requirements are met. You can read more here: https://www.daniaaccounting.com/slider/how-can-you-reassume-a-company-faced-with-a-compulsory-dissolution/

How can a non-resident company pay a salary to an employee in Denmark? Sometimes a non-resident company wants to hire just a single employee in Denmark. Due to the very low scale of activities, it is sometimes not feasible to incorporate a new resident company or to create a branch office. Listen to our podcast and read more here:

A dividend is part of the profit paid out to a company's shareholders. Capital companies like ApS and A/S can distribute dividends after the first fiscal year ends and the annual report is approved at the annual general meeting. Extraordinary dividends are distributed during the year, not at the annual general meeting.

In this podcast, we describe the costs involved in incorporating a new limited liability company in Denmark (ApS). You can read more on our website: https://www.daniaaccounting.com/slider/price-incorporating-new-aps/

If you are the director and or shareholder of a Danish limited liability company – either an ApS or A/S – you will need to approve the annual report for the company once per year at the annual general meeting. A document that we call "minutes" needs to be drafted and signed at the annual general meeting. You can read more about minutes on our website and also download a template for your minutes that can be used at the annual general meeting: https://www.daniaaccounting.com/slider/how-to-prepare-minutes-from-your-annual-general-meeting/

In general, just because you issue an invoice through an ApS for your consulting services, that does not necessarily make it a company income. In some circumstances, you might have just put yourself at risk of double or even triple taxation if you are considered the beneficiary and not the ApS. Read more here: https://www.daniaaccounting.com/slider/can-a-consultant-invoice-through-an-ltd-aps-and-why-it-can-get-very-expensive-in-tax-if-you-get-it-wrong/ #tax #consulting #smallbusiness #risk #accounting

A holding company is defined as a limited liability company that primarily owns shares in other companies. The companies that are owned by a holding company is called operating companies. A holding company in Denmark can be structured in the form of, e.g. an ApS or an A/S. A sole proprietorship cannot be a holding company. Usually, a holding company is not registered for VAT, and there is really no other activities than just managing the ownership of other companies. It is not relevant how many shares the holding company own in other companies in order to be considered a holding company but tax rules will differ greatly depending on how many shares a holding company owns. Read more here: #holding #ltd #denmark #aps

We share our insights and information on starting a sole proprietorship in Denmark. You can also read more on our website: https://www.daniaaccounting.com/slider/sole-proprietorship-denmark/ #entrepreneur #business #startup #soleproprietor #soleproprietorship

The business tax scheme is a particular tax scheme in Denmark you can use as a sole proprietor to lower or postpone your income tax. The business tax scheme enables you to use the company income tax rate (which is 22% in 2022) on the part of the profit from your sole proprietorship not withdrawn from the business to your private bank account. Read more here: https://www.daniaaccounting.com/slider/business-tax-scheme-in-denmark/ #daniaaccounting #businesstaxscheme #tax #business #denmark

Learn more about the most popular limited liability company structure in Denmark called the “ApS” on our blog: https://www.daniaaccounting.com/slider/incorporate-limited-liability-company-in-denmark-aps/ #ApS #incorporation #denmark #LTD

Let's face it. Times have been really difficult for everyone. Some businesses have skyrocketed their sales and are now struggling to find enough employees to deliver and others have seen their sales plummet to zero. Are you considering closing your ApS in Denmark? There are 5 important types of closures: 1. Voluntary liquidation (decided by the shareholders); 2. Compulsory dissolution (ordered by the court); 3. Restructuring; 4. Bankruptcy (petition filed by the company or a creditor) and; 5. Liquidation using a statement from the shareholders (decided by the shareholders). You can learn more about closing your ApS on our blog: https://www.daniaaccounting.com/slider/how-to-close-aps/ #daniaaccounting #aps #close #denmark #dissolution #liquidation #restructuring #bankruptcy

Shareholder loans can be anything from payments done using the company credit card to pay for a private cost on behalf of a shareholder, to salary advances paid to a shareholder when a payslip has not yet been made, to dividends that are distributed without complying with the Companies Act or actual loans issued to the shareholder. According to the Companies Act, then a shareholder loan can be legal if certain formalities are in order. However, if the loan is issued to a shareholder who is a physical person and not a company it will be double-taxed regardless of being legal or not. Yes, double-taxed! In reality, making shareholder loans a really bad idea! If you have received a shareholder loan by mistake and want to avoid being double-taxed, there is a way however, that can help repair the unfortunate shareholder loan. Read more here: https://www.daniaaccounting.com/slider/why-shareholder-loans-in-denmark-is-a-really-bad-idea/ #shareholderloan #loan #shareholder #tax #denmark

What is the risk for you and your client if it turns out you are considered an employee and not a freelancer or self-employed (sole proprietor)? Well, first of all, your client could face both a tax bill (since he should have withheld your personal income tax) and fines for not complying with legislation (e.g. not providing you with a proper employment contract, breach of the Danish holiday act, termination periods). Read more here: https://www.daniaaccounting.com/slider/freelancer-self-employed/ #employee #freelancer #soleproprietor #tax

If you have your own business, a sole proprietorship, you need to make partial tax payments during the year in ten equal instalments. We teach you how tax is paid and we discuss when to use the 3 tax schemes for sole proprietors in Denmark. Read more about tax as a sole proprietor here: https://www.daniaaccounting.com/slider/tax_in_denmark_as_a_sole_proprietor_b-tax/ #daniaaccounting #tax #soleproprietor #denmark

Are you struggling to open a new bank account for your business? We give inspiration and ideas as to which banks to approach and how to get started using a fintech solution as an alternative to a traditional bank. You can read more here: https://www.daniaaccounting.com/slider/how-to-open-a-company-bank-account-denmark/ #bank #fintech #inspiration #entrepreneur #startup #bankaccount #bank #business

Limited liability companies in Denmark pay company income tax on their taxable profits. The company income tax in Denmark is 22% for limited liability companies (2022). You can learn more about company income tax in our video here or read more on our website: https://www.daniaaccounting.com/slider/company-income-tax-dividend-dividend-tax-in-denmark/ #ApS #CompanyIncomeTax #CIT #Tax #Denmark #ltd

After company income tax is paid, a company can choose to distribute the remaining profits as dividends to the shareholders when certain criteria are met. The dividend tax is typically either 0%, 27% or 42% when paid to the shareholders (2021 rates) depending on how much dividend is distributed and to who. Holding companies, in general, does not pay dividend tax in Denmark, when they own 10% or more of the company. Read more about dividend tax here: https://www.daniaaccounting.com/slider/company-income-tax-dividend-dividend-tax-in-denmark/