Denmark taxes
The capital of Denmark is Copenhagen; the population of the state is 5 people. The country occupies a confident fourth position in the ranking of all states in terms of the standard of living of the population.
The life of local citizens is at a decent level - a stable economic situation, reasonable social strategies, high-quality medicine and education, high wages, a favorable environmental situation.
All these advantages also attract many foreign entrepreneurs who want to open a successful business. TO Danish jurisdiction refers to Greenland/Faroe Islands, whose taxation exists independently, but in accordance with Danish taxation. This is done in order to completely eliminate double taxation.
VAT in Denmark
The rate of this tax is 25%. Companies with an annual turnover of 6 euros or more are required by law to register as a VAT payer.
Corporate income tax
Income tax in Denmark is the basic and one of the main tax payments paid by companies. This tax is required to be paid by legal entities, regardless of their status - non-resident/resident.
It is worth noting an important existing nuance: local organizations pay tax to the state on all profits received, without exception, without taking into account the country in which the income was received. Non-resident enterprises make contributions strictly on income received only within Denmark.
Taxation of individuals
Income tax has a high percentage, compared to European countries and the whole world. The rate of this tax is 58,5%. Income tax in Denmark is calculated from employees, not from the employer.
The amount is based on the salary level. The increased percentage is due to a decent level of social security and life in general. A few months ago, local authorities proposed reducing the tax rate subject to certain reductions in the social security list, but a larger percentage of Danish citizens opposed the proposed legislative initiative.
Denmark is an example of transparent and mutual responsibility between residents and government agencies
When paying income tax, every citizen uses a developed social protection system: high payments in case of unemployment, free high-quality healthcare, education, and so on.
If you wish open a company in Denmark, experienced Company specialists «E-COMMERCE BROKER will be happy to provide professional assistance and comprehensive support in resolving emerging issues.
Thanks to many years of practice, we successfully work with high-growth (Forex trading account, travel) and low-growth industries (transport companies, pet supplies), and offer a large selection of optimal banking solutions:
- offshore bank account;
- crypto acquiring;
- mobile POS;
- ASN processing and much more.
In our working practice, we act exclusively within the framework of the legislation of the chosen jurisdiction. Would you like to know in detail about Danish taxation, and existing methods of legal optimization? Contact us, we will be happy to answer your questions, provide competent advice and accept your application for work.
