Tax

All public and private limited companies, foundations and associations as well as foreign companies with a permanent establishment or registered office in Denmark are subject to Danish corporation tax. At DLA Piper, we offer specialist advice on all aspects of Danish corporation tax.

We can provide an overview of all the tax-related issues that you should be aware of when operating a public or private limited company or an entrepreneur company, a foundation or an association. With our advice, you will have the best possible tax solution for your business and avoid unpleasant tax consequences.

We can handle the dialogue with the tax authorities on your behalf. If necessary, we can also represent you in an appeal against the tax authorities.

Self-employed traders

As a self-employed trader, you may have many unanswered questions concerning tax, especially during the startup phase. Perhaps you are uncertain as to whether a particular expense is deductible. You may need advice on the rules on depreciation and amortisation. You may want to know whether you will have to pay exit tax if you move operations to another country. Or, as the principal shareholder of a company, you may be uncertain of when you will become subject to the stricter rules on taxation of principal shareholders.

We can assist you and answer all these important questions so that uncertainty becomes certainty and you understand the tax-related challenges that you will be facing along the way.

Choice of business form as a self-employed trader

As a self-employed trader, you may choose among a number of business forms, e.g. a sole proprietorship, a partnership or the business taxation scheme. These business forms have different tax consequences. You should know these consequences before making your choice. We can advise you and recommend the business form which is most suitable for you.

Capital gains tax on shares is the tax payable on the gains and losses realised when you sell shares. Capital gains/losses on shares are taxed as share income. We can advise you on thresholds and tax rates which may change from year to year.

For more information on capital gains tax on shares, please visit the website of the Danish Ministry of Taxation.

Share-based remuneration and incentive schemes

Share-based remuneration and incentive schemes may strengthen the ties between a business and its key employees and at the same time increase the employees' motivation and commitment. Businesses in corporate form may offer co-ownership to its employees in the form of share-based remuneration such as:

• Stock options
• Warrants
• Employee shares
• Phantom shares

We advise on share-based remuneration and incentive schemes and can help you choose the right type of share-based remuneration or incentive-based remuneration and help you draft, negotiate and implement the schemes. Naturally, tax advice forms an integral part of identifying the scheme which is most suitable for all parties. We can also help you update your existing share-based remuneration and incentive schemes and represent you in connection with legal disputes and tax cases in this area.

We advise on the taxation of capital gains and losses. By way of example: capital gains arise when the prices of securities increase or decrease due to changed interest rates, indexation, currency rate changes or a debtor's failure to pay due to his reduced ability to pay or inadequacy of the security provided in connection with mortgages or guarantees. Regardless of your situation, our tax advisors are ready to assist you.

All persons who are resident in Denmark are subject to Danish income tax. The same applies to the estates of deceased persons, companies, foundations and other legal persons.

We can advise you on all income tax aspects, including full and limited tax liability. By way of example: what happens with your tax liability if you move to another country or if you work abroad but keep your home in Denmark? We can provide you with clear answers to this and many other questions.

When a company has paid corporation tax, it may still have a profit, which may be retained in the company and transferred to equity or be distributed as dividends to the shareholders.

When a company pays dividends to its shareholders, the amount distributed is often subject to dividend tax.  The taxation rules depend on a number of factors, including whether the shareholder is a person or a holding company. The best solution will therefore depend on the specific situation. Based on our advice, you may maximise the amount received as dividends in accordance with the current dividend tax rules.

Companies operating in the global market need coordinated global tax advice. Our international network enables us to advise you on national tax law from an international perspective.

DLA Piper is a natural partner and advisor for businesses operating across borders. With more than 300 tax advisors in offices in more than 50 countries, we solve complex tax-related challenges relating to international commercial activities and tax disputes.

Double taxation

Double taxation is when a person or company is liable to pay tax on the same income in two or more countries. Our global presence means that we have profound knowledge of the double taxation treaties or agreements concluded by Denmark with other countries. Although most double taxation agreements are based on the OECD Model Tax Convention, the individual agreements may contain specific provisions agreed by the countries in question.

It may be difficult to read the individual agreements and thus know how to tackle a double taxation situation. We can help you navigate the rules, benefiting from the knowledge of our international colleagues.

As an owner, tenant or landlord, you must be aware of the tax consequences relating to the ownership, use or sale of real estate. We advise on all tax aspects of real estate.

Sale and purchase of real estate

We can advise you on whether a profit or loss on the sale of real estate is taxable or deductible.

In connection with the sale of major property portfolios or projects, we can advise on which structure is the most advantageous from a tax law point of view.

We can advise you on official property valuations and assist if you wish to appeal against an official property valuation.

Regular income and expenses in relation to real estate

We can advise you on which income is taxable and which expenses are deductible. We can answer questions as to whether the rental value is taxable, whether your home may be considered as part of your business for tax purposes, and whether you are entitled to live on your business premises. Our tax lawyers can provide you with an overview of the taxes payable when you own real estate.