Corporate Tax Denmark – Frequently Asked Questions
Everything You Need to Know About Corporate Tax in Denmark
What is Corporate Tax in Denmark?
How to File Corporate Tax in Denmark?
What Deductions are Available for Businesses in Denmark?
What is the Corporate Tax Rate in Denmark?
1. Does a Polish person working in Denmark on an employment contract have to pay taxes in Denmark?
Yes, if you work in Denmark, you are required to pay taxes there, regardless of your nationality.
2. What documents are required to claim a tax refund from Denmark in Poland?
You typically need your Danish tax return, proof of income, and possibly other documents such as your tax card or payslips.
3. How is income tax calculated in Denmark?
Income tax in Denmark is progressive, based on your total income, and includes both national and local taxes.
4. What should I do if I didn't report income in Denmark by mistake?
You should contact the Danish tax authorities (SKAT) to correct the mistake and possibly file an amended tax return.
5. How long does the tax refund process take in Denmark, and what steps do I need to take?
The process can take several weeks to a few months. You need to file a tax return, submit required documents, and follow up with the Danish tax authorities if necessary.
6. What are the rules for filing annual tax returns in Denmark?
In Denmark, individuals are required to file an annual tax return, usually by May 1st of the following year. The return can be submitted online through the SKAT website.
7. Can I receive a tax deduction in Denmark if I pay alimony in Poland?
Yes, you may be eligible for tax relief in Denmark if you pay alimony, but you need to provide proof of payment and check if it qualifies under Danish tax rules.
8. What are the consequences of failing to comply with tax regulations in Denmark?
Non-compliance can lead to penalties, fines, and interest on unpaid taxes. In serious cases, criminal charges may apply.
9. What tax changes for Poles in Denmark have been implemented in recent years?
Recent changes include adjustments to tax brackets, deductions, and rules for foreign workers. It's important to stay updated through Danish tax authorities.
10. Where can I find a forum where users share experiences regarding tax refunds from Denmark?
You can find forums on various expat websites, tax-specific forums, or social media groups, where individuals share their experiences and advice on Danish tax refunds.
11. What documents are required to establish a business in Denmark?
To start a business in Denmark, you typically need a valid passport, a Danish address, a CVR (business registration number), and a bank account for the business.
12. Can a Pole benefit from tax deductions in Denmark, similar to Poland?
Yes, Poland's tax residents can claim similar tax deductions in Denmark, depending on their situation, such as deductions for children or specific business expenses.
13. What VAT obligations does a Pole running a business in Denmark have?
A business owner in Denmark must register for VAT if their turnover exceeds the threshold, file VAT returns regularly, and pay VAT on services or goods sold.
14. Can a person working in Denmark benefit from Polish tax deductions during annual tax filing?
Generally, no. If you're a tax resident of Denmark, you must comply with Danish tax regulations. However, some deductions or credits may apply based on international agreements.
15. What are the rules regarding hiring employees in Denmark?
Employers in Denmark must register with the Danish tax authorities (SKAT), ensure compliance with labor laws, and pay social security contributions for their employees.
16. Can I deduct work-related expenses in Denmark, such as travel, accommodation, or training?
Yes, work-related expenses such as travel, accommodation, and training may be deductible if they are necessary for your job and meet Danish tax requirements.
17. Are there any tax preferences for Poles in Denmark?
There are no specific tax preferences for Poles in Denmark, but Poland and Denmark have agreements to avoid double taxation, which can help reduce tax liabilities for individuals working across both countries.
18. What are the rules for VAT refund in Denmark for foreign companies?
Foreign companies can claim VAT refunds in Denmark through the EU VAT refund scheme or by applying directly to the Danish tax authorities, depending on the nature of the business and its VAT status.
19. What should I do if I fail to report income in Denmark on time?
You should contact the Danish tax authorities (SKAT) to correct the error and possibly file an amended tax return. Penalties and interest may apply for late submission.
20. What are the tax rules for Poles working in Denmark under a contract for work (umowa o dzieło)?
Poles working under a contract for work in Denmark are generally subject to Danish tax laws. Income from such contracts is typically taxed as employment income, and the individual must report it to SKAT.
21. What are the most common questions about tax refunds from Denmark that appear on forums?
Common questions include how to apply for a tax refund, the required documentation, how long the refund process takes, and whether individuals are eligible for a refund if they worked for only part of the year.
22. What should I do if my business in Denmark is not profitable but I still have to pay taxes?
You should consult with a tax advisor to assess your business situation. Even if your business is not profitable, you may still have tax obligations, including VAT or minimum tax payments.
23. What tax obligations does a Pole running a business in Denmark have?
A Polish business owner in Denmark must register for VAT (if applicable), file annual tax returns, pay income tax on profits, and comply with all Danish tax regulations for employees and payroll.
24.What are the rules for using company cars in Denmark for tax purposes?
Company cars in Denmark are subject to specific tax rules. If you use a company car for personal purposes, it is considered a benefit and may be taxed. The value of this benefit is determined by the car’s value and the extent of personal use.
25. Do I have to pay taxes in Denmark if I earn money in Poland but am a resident of Denmark?
Yes, as a tax resident of Denmark, you are required to report and pay taxes on your worldwide income, including earnings from Poland. However, the double taxation agreement between Denmark and Poland may help avoid being taxed twice on the same income.
26. What are the rules for calculating income taxes in Denmark?
Income tax in Denmark is progressive. The more you earn, the higher your tax rate. It includes both national and municipal taxes, along with social contributions.
27. What documents are required to claim a tax refund from Denmark in Poland?
To claim a tax refund from Denmark in Poland, you typically need your Danish tax return, proof of income, payslips, and possibly other relevant documents such as your Danish tax card.
28. Is there a requirement to have an accountant in Denmark if I run a sole proprietorship?
While there is no legal requirement to have an accountant for a sole proprietorship, it is highly recommended to ensure compliance with tax regulations and accurate filing.
29. What are the deadlines for filing tax returns for individuals and businesses in Denmark?
For individuals, the deadline is usually May 1st for the previous year’s tax return. For businesses, the deadline can vary depending on the fiscal year, but it is typically six months after the end of the financial year.
30. What tax changes for Poles in Denmark have been implemented in recent years?
Recent changes include adjustments to tax brackets, new rules for foreign workers, and updates to VAT regulations. It’s important to stay informed about any tax amendments affecting Polish residents working in Denmark.
