How to scan your invoices to e-conomic using the e-conomic app

Why shareholder loans in Denmark is a really bad idea

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 shareholder (a physical person, not a company), then it will be taxed regardless of being legal or not.

What is GDPR?

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.

Are you a majority shareholder? – Guide to Controlled Transactions – Appendix 05.022

For the year 2019, it has been decided that ALL majority shareholders in Denmark must submit an Excel-sheet together with their personal income tax declaration (oplysningsskema) on SKAT Borger. You are the majority shareholder, when you have a controlling influence in a company (f.ex. when you own an ApS, IVS or A/S). If you own more than half of the shares in your company, then you are a majority shareholder. The deadline for submitting the appendix for controlled transactions is: 1.9.2020. The appendix is ​​an Excel sheet prepared by the Danish Tax Office.

Coronavirus/COVID-19: The VAT that was paid 2.3.2020, can now be repaid as an interest free loan to the company

The government has announced a new compensation aid package, that will make it possible to get the VAT paid on 2.3.2020 repaid. The VAT will be refunded as an interest free loan. The loan is…

Coronavirus/COVID-19: This is how you apply for compensation as a small business owner or a sole trader

We have made a guide for your here, if you want to apply for compensation as a small business owner, or a sole trader, as a result of the Coronavirus/COVID-19 crisis. This compensation package is…

Coronavirus/COVID-19: This is how you apply for salary compensation for your employees

We have made a guide here, showing you how to apply for salary compensation in relation to the Coronavirus/COVID-19 crisis. First, you need to log in to the government “VIRK” website – you can click…

Coronavirus/COVID-19: The government now will help compensating small companies for both the loss of sales AND paying for fixed costs

The government will compensate up to 75% of the loss of sales for small companies, that has seen a loss of sales of more than 30%. The compensation will be maximum 23.000 DKK per month. The government will compensate 25-80% of the fixed costs.

Coronavirus/COVID-19: Small companies can postpone payment of employee taxes, B-tax (sole proprietors) and VAT

The payment term for employee taxes is postponed 4 months. The payment term for B-tax is postponed. The payment term for VAT is postponed. Remember that you can still change the payment of company income tax.

Coronavirus/COVID-19: Compensation rules in Denmark for salaries when employees are sent home

The compensation option for salaries relates to companies, that otherwise would be in a situation where they would have to terminate at least 30% of all their employees or more than 50 employees. So for our clients, the 30% rule will be most relevant.

Brexit – should you set up a business in EU (Denmark)?

Impact of Brexit on UK businesses: Key challenges & how to overcome them Three years after the Brexit referendum in which Great Britain voted to withdraw from the EU, the EU and the UK still…

4 important steps to follow after your new ApS is incorporated

After your new ApS is incorporated, then there are 4 important steps to follow. If we incorporated the ApS for you, then we will assist you getting these 4 steps done correctly.

Bankruptcy – what really happens and how fast does it actually go?

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 a bankruptcy. This blog only explains the bankruptcy process for limited liability companies (IVS, ApS and A/S).

How to close an ApS or IVS

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)

How to make a cash report (instructional video)

Watch our instructional video here on how to make a cash report (in Danish: “kasserapport”). A cash report is required by law in Denmark, if your company receives cash from its clients. It is normally shops, restaurants, café and similar types of companies.

Price for incorporating a new ApS

Here you can read more about the fees that relate to the incorporation of a new ApS in Denmark.

Company income tax, dividend and dividend tax for limited liability companies in Denmark

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 (2021). After the company income tax is paid, the company can choose to distribute the remaining profits as dividends to the shareholders. The dividend tax is 0%, 27% or 42% when paid to the shareholders (2021) depending on how much dividend that is distributed and to who. Holding companies does not pay dividend tax in Denmark, when they own 10% or more of the company.

What can you deduct in your taxable income when making larger investments?

There are two different kinds of depreciation: one relates to accounting principles and the other to the tax law. This is the law we must follow when we make your tax declaration, in which a specific set of rules dictate how we calculate depreciation and your taxable income.

What do we offer corporate clients?

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).

Can you deduct your transportation from your home to your company?

To determine whether or not you can deduct transportation costs from your home to your company in your personal taxable income (this type of deduction is called “befordringsfradrag” in danish), then you need to calculate the total amount of kilometers that you drive every day from your home to your company and back. If the roundtrip exceeds 24 kilometer per day, you are normally eligible for a tax deduction.

What can you deduct when driving a van for your company?

A van used for transporting goods for your business may be eligible for deductions, but the rules are different, depending upon if you purchase or lease the vehicle.

How to deduct your home office in your personal income tax

First off, in order to deduct your home office in your personal income tax, you must change the physical appearance of the office. The tax office in Denmark will ask what you have in this home office. For example, if you have a three-room apartment and you use one of the rooms for a home office, in order to receive a deduction, it must be physically changed. If the office’s physical appearance has not changed, you cannot take a deduction.

How do I make a cash report?

A cash report is not to be confused with the sales report that you print from the register. The report involves documenting how much cash you had in the morning and the evening – basically, how much money that went in and came out of the cash register.

How to pay VAT or get a VAT refund

This article will cover how we actually pay the VAT, and if you qualify, how you retrieve a VAT refund from the tax office.

How to submit invoices for booking

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 or by mailing them directly to the accounting system.

What do we need from you, when you order payslips?

Before we can make payrolls and salaries for the first time for your employees, your company must be registered to have employees. In Danish this type of registration is called “arbejdsgiverregistrering”. It is an additional registration, to an already existing VAT registration. You can check on the tax office website SKAT Erhverv, if your company is registered as an employer. If you are not registered as an employer, we can help you with this.

What information do we need to incorporate a new ApS?

In this blog we describe, what information we need to incorporate a new ApS. An “ApS” is a danish limited liability company structure.

How do you pay tax for your employees?

When you hire an employee in Denmark and negotiate their salary, you’ll always be negotiating a gross salary, not a net salary. A gross salary is the amount paid to the individual by an employer, before any deductions are taken, while a net salary is the residual amount following deductions, which include payroll taxes.

Do I need an auditor to audit my annual report?

Many of Dania Accounting’s clients ask whether or not they actually need an auditor to audit their annual report. In most cases, the answer is no. We’ll briefly explain why by outlining the audit rules for sole proprietorships, limited liability companies, and holding companies.

Starting a danish sole proprietorship

How do you start a sole proprietorship in Denmark?

What do we offer small companies?

Dania Accounting provides quality service to both small and large companies, including accounting and payroll services, VAT declarations, tax returns, annual reports and budgets.

Incorporating a new limited liability company in Denmark (ApS)

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.

Company tax for sole proprietorships (“B-tax”)

Your payments relating to B-tax, which comes from the expected revenue in the sole proprietorship, will be split into 10 installments. Payments are to be made on the 20th of each month from January to May, with no taxes to be paid in June, and then payments again from July to November, with no tax due in December.

What type of company should I choose?

When you need to choose what type of company you want to incorporate in Denmark, the first question you should ask yourself, is whether or not you prefer to run the business where you are personally liable, or if you prefer to place the liability in a structure, known as a limited liability company.