In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- 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
Confederation of Danish Industry
- 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 weighted 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.
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.
Learn more about Service Providers in Denmark on Globaltrade.net, the Directory for International Trade Service Providers.
- 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 27% up to DKK 48,300 and 42% above.
- Main Allowable Deductions and Tax Credits
For information on company deductions consult Facts on Taxation in Denmark from the ministry of Foreign Affairs of Denmark.
- Other Corporate Taxes
Registration duty, Real property tax, Stamp duty.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|Individual Tax rate
||Progressive rate from 0% to 59%
|Up to DKK 41,000
|From DKK 41,001 to 279,800
|From DKK 279,800 to 335,800
|DKK 335,801 and over
- Allowable Deductions and Tax Credits
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
Learn more about Taxes and Accounting in Denmark on Globaltrade.net, the Directory for International Trade Service Providers.
- 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
Learn more about Lawyers and Legal in Denmark on Globaltrade.net, the Directory for International Trade Service Providers.
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Last Updates: January 2015