DENMARK

Profile

 

Affiliations: European Union.


Legal System: Civil law system, accepts compulsory International Court of Justice jurisdiction with reservations.

Source of tax law: corporation Tax Act and Personal Tax Act, the Danish Companies Act and others. 


Government: Constitutional monarchy and unitary parliamentary democracy.


Currency: Danish krone.


International Time: +1 hrs. GMT.


Country Code: 45.


Official Language: Danish. Also speak English.


Type of Legal Entities:  A/S (Aktieselskab) is similar to a public limited company; ApS (Anpartsselskab) is similar to a private limited company; K/S (Kommanditselskab) is similar to limited partnership; P/S (Partnerselskab) is similar to limited partnership company; I/S (Interessetskab) is similar to partnership.


Exchange Controls: No exchange controls or reporting requirements are imposed on fund transfers associated with investments coming into or flowing out of Denmark.

Taxation:

  • High-tax jurisdiction;
  • Corporate tax rate is 22%;
  • Transfer pricing;
  • Numerous double tax treaties.

Applicable for:

  • Holding companies and trust structures;
  • Tax planning;
  • Onshore status;
  • Asset protection;
  • Gateway to Europe.

Double Taxation Treaties: Danmark has more than 80 DTT with different countries in the world, and more than 10 treaties under negotiation. You can find the full list of treaties here.

Accounting principles/financial statements: IAS/IFRS/Danish GAAP. Financial statements must be prepared annually. The tax year is calendar year or another period if the taxpayers so elects. The tax year may not exceed 12 months.