Financial reports are comprehensive documents that provide a detailed overview of a company’s financial position, performance, and cash flows over a specific period, typically a fiscal year or quarter. Financial KPIs in Denmark are essential for business owners, investors, creditors, and other stakeholders to evaluate the financial health and viability of a business.
With the growing importance of corporate sustainability and transparency, understanding the mandatory ESG reporting requirements in Denmark is important for businesses to ensure compliance and capitalise on the opportunities presented by comprehensive ESG disclosure.
The Tax Credit Scheme in Denmark is a government initiative designed to improve the cash flow of companies that invest in R&D activities. Under this scheme, companies can receive an advance payment of the tax value of their R&D expenditures, effectively providing them with additional liquidity to support their operations and growth.
In this blog, we will look at the potential implications and consequences that limited liability companies in Denmark (ApS and A/S) may face for submitting their annual reports late. Understanding the risks associated with late filing can help business owners take proactive measures to ensure compliance and avoid unnecessary penalties or reputational damage.
Denmark’s New Time Registration Law for 2024 will be mandatory for employers in Denmark to enable employees to register their working hours. One of the biggest impacts on employers is the new legal requirement to implement an “objective, reliable and accessible” system for tracking each employee’s daily working hours.
In this blog, we discuss what can happen if you are considered an employee and not a freelancer or sole proprietor in Denmark. Proper classification of income is important for complying with Danish labour laws, tax and VAT regulations.
In Denmark, whether a company uses the Danish Financial Statements Act, GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards) for its annual reports depends on the size of the company and whether it is publicly traded or not.
In this blog, we examine why it is important to apply interest on intercompany loans and shareholder loans in Denmark in 2024. For loans between related parties, if the interest rate set does not correspond to the interest rate that independent parties would have set in a similar situation, the interest rate will be corrected during tax audit.
In this blog, we describe how to avoid problems when applying for VAT registration for a new ApS. One of the more significant changes we have seen this year is increased due diligence by the Danish Tax Agency when applying for VAT registration. It is mainly foreign shareholders, either non-residents or residents of Denmark, who are affected.
In this blog, you can learn which insurances are mandatory for your business in Denmark in 2024 and which insurance that are voluntary. Together with your insurer, it is recommended to look at the needs of your business so that together you can find the best insurance solution for you.
There are currently special rules on what a sales receipt from your cash register must contain when you sell to private customers from your business. From 1 January 2024, there is a new legal requirement for some businesses to use digital cash registers for their sales registration.
Controlled Foreign Companies (CFC's) have become tightly regulated in Denmark as more corporations look to minimise their tax liability by offshoring their subsidiaries to lower-tax countries. As corporations increasingly do business across multiple continents, the drive to avoid higher taxes in their home countries has necessitated new laws and regulations. This article will discuss what is considered a CFC and the regulations and directives specific to Denmark for the tax year of 2024.
Accounting software has become a core function in the modern business world, and it’s easy to understand why. Both large and small businesses in Denmark use online accounting software to simplify or automate most key accounting processes, reduce bookkeeping errors and make data-driven decisions to use company resources more efficiently. In this blog, we compare e-conomic, Dinero and Billy, making you better informed about choosing the best accounting software for your business in 2024.
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 Danish Tax Agency. Transfer Pricing should now always be submitted 60 days after the Corporate Income Tax return deadline when exceeding certain thresholds.
Majority shareholders, who are physical persons and limited or fully tax residents in Denmark, must submit a special declaration each year to the Danish Tax Agency relating to controlled transactions between themselves and their controlled entities in addition to their tax return.
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.
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.
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.
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.
A holding company is a limited liability company that primarily owns shares in other companies. The companies that a holding company owns are called operating companies. A holding company in Denmark can be structured as 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 are no other activities than just managing the ownership of other companies. It is not relevant how many shares the holding company owns in other companies to be considered a holding company, but tax rules will differ greatly depending on how many shares a holding company own.
When you sell a product or service to a client, you always need to issue a normal invoice, a simplified invoice or a receipt as a Danish business. In this blog, we describe what the rules are for sales invoices.
If you sell products or certain services to consumers in the EU where VAT is settled in the buyer's country of residence you can declare and pay the VAT in a system called “Moms One Stop Shop”. This is smart since you only have to declare and pay the VAT for all EU countries in one place.
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 corporate income tax rate (22% in 2024) on the part of the profit from your sole proprietorship not withdrawn from the business to your private bank account.
If you are the director and or shareholder of a Danish limited liability company - either an ApS or A/S - then you will need to approve the annual report for the company once per year at the annual general meeting.
In this blog, we will explain how you can open a company bank account in Denmark for your company. It is getting very hard for companies to get a company bank account in Denmark, but there is a way to get started. And we also suggest an alternative solution if the Danish banks decline your request to open a company bank account.
Learn how to convert your sole proprietorship to ApS in 2024. There can be many reasons why you would want to convert your sole proprietorship to ApS. Very often, it relates to limited liability or tax considerations.
What is the risk for you and your client if it turns out you are 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 (f.ex. not providing you with a proper employment contract, breach of the Danish holiday act, termination periods etc.).
Just because you issue an invoice through an ApS for your consulting services 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.
We have made a guide for you here that shows how to scan your invoices to e-conomic using the e-conomic app. It is very helpful for us when you scan your invoices since we can store all invoices digitally inside e-conomic.
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, 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. However, if the loan is issued to a majority shareholder (a physical person, not a company), the loan could be taxed regardless of whether it is legal or not.
GDPR is a European Union law that requires businesses operating in the EU to justify how certain data is collected and used. Failure to comply with GDPR can profoundly affect a business, including very large fines.
After your new ApS is incorporated there are 4 important steps to follow. If we incorporated the ApS for you we can assist you get these 4 steps done correctly.
Almost every person that has ever tried to start their own company, knows the fear of running out of money. When you have a company, the technical term for that, is to go "bankrupt" - or to be declared "bankrupt". The whole process leading up to being bankrupt, we call the bankruptcy proceedings. This blog explains the bankruptcy procedure for the ApS.
There are 5 important types of closures and proceedings to know: 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) 5: Liquidation using a statement from the shareholders (decided by the shareholders)
Our fee for assisting you with incorporating a new ApS is 3.000 DKK + VAT. During the process of incorporation, we also need a lawyer to confirm your deposit of the share capital into a bank account. Since the company does not yet have a bank account, the share capital deposit is made to a bank account belonging to the lawyer. The share capital is transferred to the new ApS after the incorporation.
Limited liability companies in Denmark (ApS or A/S) pay corporate income tax on their taxable profits. Denmark's corporate income tax rate is 22% for most limited liability companies in 2024. After corporate income tax is paid, the company can distribute the remaining profits as dividends to the shareholders. The dividend tax typically ranges from 0% to 42% when paid to shareholders, depending on how much dividend is distributed and to who. In general, unmarried resident shareholders can receive up to 61.000 DKK at a dividend tax rate of 27% in 2024. Holding companies generally do not pay dividend tax in Denmark when they own 10% or more of the company that distributes the dividend.
There are two different kinds of depreciation: one relates to accounting rules and the other to tax rules. The accounting rules we follow when we make a financial report. The tax rules we follow when we calculate your taxable income.
Dania Accounting provides accounting services, payroll services, and other services to corporate clients based in Denmark. We ensure your accounting remain efficient, accurate, streamlined and compliant. We work together with most of the major audit firms in Denmark (Martinsen, EY, KPMG, PwC, Beierholm). If you need 20 hours or more of accounting per month we charge:375 DKK + VAT per hour
We look at two types of car costs when considering tax in Denmark: Driving to and from work in a private car and driving on behalf of a business in a private car. The car costs are calculated using standard rates the Danish Tax Agency decides. Depending on your situation, calculated car costs are either reimbursed from the business as a tax-free reimbursement, used to lower your personal taxable income or added as a cost to your business to lower business profits.
A van used for transporting goods or tools for your company is eligible for VAT deductions when the company is registered for VAT, but the rules are different depending on the maximum payload of the van and if you purchase or lease the vehicle and also if you use the van only for the company or also for private purposes.
By calculating the cost of using your home office for your business and then deducting this cost from the profit of your business you can lower the profit of your business thus lowering your tax. But the tax rules in Denmark regarding home offices are pretty strict, and not everyone is able to apply the rules. This blog covers how to deduct your home office from your taxable income in Denmark in 2024.
Do you receive cash payments in your business? Learn how to make a cash report in Denmark with this detailed guide including video instructions.
This blog will cover how to pay VAT or get a VAT refund in 2024. VAT means "Value Added Tax". The VAT rate in Denmark is 25%. It is a form of sales tax that most Danish companies are obligated to add to their sales. And in return, the companies can deduct the VAT they paid on their costs.
There are a few different ways to submit your invoices for booking. We always recommend scanning your invoices and submitting them directly to your accounting system, either by using an app, uploading from your desktop or by mailing them directly to the accounting system.
In this blog, we discuss what is required to make payslips for your employees when we do the payroll for your company. Before we can prepare the payroll and make payslips for your employees, your company must be registered as an employer.
In this blog, we describe what information we need to incorporate an ApS in Denmark. An "ApS" is a Danish limited liability company structure and this is the most common type of limited liability company in Denmark. It requires a minimum share capital of 40.000 DKK.
As an employer in Denmark, you must withhold tax from the payroll on behalf of your employees. The amount of tax to withhold from the payroll is calculated by the Danish Tax Agency in advance on the basis of a self-assessement made by the employee, and the tax withholding information is sent directly to the payroll system automatically once the employee is registered correctly in the payroll system.
Audits of annual reports are not mandatory for most companies in Denmark in 2024. 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 was introduced in 2023.
This 2024 guide explains how to start and register a sole proprietorship in Denmark - also sometimes called a "one-man company" or a "sole trader".
Headquartered in Copenhagen, Denmark, we specialise in helping customers get their accounting, payroll, annual report and tax returns done accurately and on time, at a fair price, while still being compliant. If you need 1-2 hours of accounting per month we charge:550 DKK + VAT per hour If you need between 3-19 hours of accounting per month we charge:450 DKK + VAT per hour
The ApS is a specific type of limited liability company in Denmark. As the owner of an ApS, you are not personally liable for the debts and obligations of the company. Here you can read more about incorporating a new ApS.
As a sole proprietor, you make partial payments during the year in ten equal instalments. The ten partial payments during 2024 are estimated and not based on your actual profit. We call this a "self-assessment" since you have to estimate your profit.
The 4 most common company structures in Denmark are: Sole Proprietorship, Limited Liability Company, Branch Office and Registration as a Foreign Company. When you decide between the company structures, you must consider your level of experience, how confident you are in your business plan, how much money you will be investing, your risk, the type of products or services you sell, and also the type of clients and contracts you make.
If you are looking to partner up with an accountant in Copenhagen, Denmark, Dania Accounting is a professional accounting firm which specialise in outsourcing of accounting. We are a team of 30 experienced accountants and controllers with a focus on providing traditional accounting services. This includes; Financial accounting, Managerial accounting, Cost accounting, Corporate Income tax Returns, VAT, Payroll, Annual Reports and preparation for external audits. We can handle either all or part of your accounting.
Our accountants and controllers work in e-conomic, Dinero, Billy, SAP, Microsoft Dynamics NAV, Microsoft Dynamics 365 Business Central, Danløn and DataLøn. We also have experience working with many integrations - like automatic bank reconciliation, PLEO to manage employee expenses, Corpay for invoice approval workflows and payment of suppliers, LeverandørService for automated customer payments, Budget123, and more.
Our accounting and payroll clients range from large international corporations to smaller and medium-sized Danish companies. We have experience working with 2.000+ clients. Our accountants and controllers speak English on a business level and are used to service international clients. You can book an online meeting here on the website, or meet us at our office in Copenhagen. We look forward to hear from you.
