International and Danish tax

Danish taxation rules are not always easy to understand, especially, when the international factor comes into play. Read more to avoid costly mistakes.

Why is it important?

As business owners, we tend to focus on profitable business operations and on building robust commercial relationships.

That is fine, however this strong focus on the business sometimes leads to companies having a large blind spot towards their tax compliance. As tax regulations are complex and not easily understood, the task is often handed off to an external accounting firm and is not integrated in the companies’ 2030 strategies. It simply is not deemed important enough. Unfortunately, that is often a costly mistake. 

Especially, when international factor comes into play, tax treatment and the obligations towards the tax authorities in different countries carries a large potential financial downside if not handled properly. Our best advice would be to plan for tax before and during your business expansion into Denmark or the Nordics. It is one of the easiest ways of avoiding losing money afterwards – simply by getting off to a good start tax-wise. 

What can we do for you?

At R&R International, we make it easy for you to understand and comply with your tax duties. Both the applicable Danish regulations and international tax conventions, regardless whether your business is crossing the border into – or out of – Denmark. 

How can we assist you?

Our expertise includes among others:

  • Taxation of foreign companies doing business in Denmark.
  • Taxation of Danish companies doing business abroad.
  • Transfer pricing methods.
  • Holding companies’ taxation in Denmark.
  • How will your choice of form for your Danish company/business effect your group’s overall taxation?

Would you like to learn more about the tax implications of your next business adventure? Contact us today.

Tax duties for new companies in Denmark

Danish companies as well as certain foreign companies, are subject to a Danish corporate tax rate of 22% (2020) on their net corporate income. Business expenses incurred by acquiring, securing and maintaining taxable income are generally deductible. However, there are other tax duties you should be aware of, if you are starting your own business or is a new company in Denmark.

Read the article here
Import and export in Denmark – here are the main rules

If as a Danish business, you do business with customers abroad, special VAT rules apply. The rules depend on whether you are selling goods or services, whether you are trading with businesses or private individuals, and whether you are trading within the EU or outside the EU (third countries).

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Do foreign companies temporarily operating in Denmark pay taxes in Denmark?

It is not unusual that businesses or companies in other EU/EEA countries carry out temporary work in Denmark. If you or your business find yourself in this situation, you should be aware that Danish rules may apply, causing taxation and a duty to register with the authorities.

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Will sending an employee to work in Denmark cause Danish taxation for the foreign employer?

Many foreign companies are interested in selling goods or providing services in Denmark. Some are already active in the Danish market through Danish retailers, but intend to cut out the middle-man and establish a branch or subsidiary directly in Denmark themselves to get closer to the end-customers.

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Which company type should I choose in Denmark?
One of the main challenges when establishing a company is choosing the relevant form. You probably have a pretty good idea about which company type from your native jurisdiction you would choose. But which Danish company type is the closest match?
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What you should know when entering into a commercial contract with a Danish business partner

As a rule, Denmark has a high degree of contractual freedom, which makes Denmark a liberal venue for entering into commercial relationships.

There are however, some exceptions to the general rule - depending on the nature of the contractual relationship; some rules cannot be derogated from. 

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