Can a consultant invoice through an ApS? – and why it can get VERY expensive in tax if you get it wrong!
Release Date: 02/21/2022
Why is it important to apply interest on intercompany loans and shareholder loans in Denmark?
Dania Accounting Podcast
In this podcast, we examine why it is important to apply interest on intercompany loans and shareholder loans in Denmark. For loans between related parties, if the interest rate set does not correspond to the interest rate that independent parties would have set in a similar situation, the interest rate will be corrected during a tax audit.
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How to prepare written Accounting Procedures in Denmark
Dania Accounting Podcast
Most companies in Denmark must have written Accounting Procedures in place. The document describing your Accounting Procedures is internal and should not be submitted anywhere unless requested by the authorities. Nevertheless, you should have the written Accounting Procedures done and update them regularly to avoid non-compliance and possible fines.
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Tax Credit Scheme for Research & Development costs in Denmark
Dania Accounting Podcast
The Tax Credit Scheme in Denmark is a government initiative designed to improve the cash flow of companies that invest in R&D activities. Under this scheme, companies can receive an advance payment of the tax value of their R&D expenditures, effectively providing them with additional liquidity to support their operations and growth.
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How to Understand Your Financial Report Using Financial KPIs
Dania Accounting Podcast
Financial reports are comprehensive documents that provide a detailed overview of a company’s financial position, performance, and cash flows over a specific period, typically a fiscal year or quarter. Financial KPIs in Denmark are essential for business owners, investors, creditors, and other stakeholders to evaluate the financial health and viability of a business.
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What company structure should you choose in Denmark?
Dania Accounting Podcast
The 4 most common company structures in Denmark are: Sole Proprietorship, Limited Liability Company, Branch Office and Registration as a Foreign Company. When deciding between company structures, consider your level of experience, how confident you are in your business plan, how much money you will invest, your risk tolerance, the types of products or services you sell, and the types of clients and contracts you work with.
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Transfer Pricing rules in Denmark for 2023
Dania Accounting Podcast
Transfer Pricing rules in Denmark have changed many times over the last couple of years. It is now mandatory for larger companies in Denmark to submit Transfer Pricing documentation each year. It was required to prepare the Transfer Pricing documentation in the past, but it was only submitted within 60 days upon request from the tax office. Transfer Pricing should now always be submitted 60 days after the tax return deadline when exceeding certain thresholds. You can read more here: https://www.daniaaccounting.com/slider/transfer-pricing-rules-in-denmark-for-2023/
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Audit requirements in Denmark for annual reports in 2023
Dania Accounting Podcast
Audits of annual reports are not mandatory for most companies in Denmark. In general, larger limited liability companies need to be audited, and smaller companies do not need to be audited. The difference between “smaller” and “larger” is defined by thresholds for revenue, amount of employees and assets. However, new audit rules will be introduced in 2023. You can read more here: https://www.daniaaccounting.com/slider/audit-requirements-in-denmark-for-annual-reports-in-2023/
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Cash flow budget – and why having one matters for your business
Dania Accounting Podcast
A budget isn’t just an expense-cutting tool; it can help you grow your business by providing you with the structure you need to make smart financial decisions. By creating a cash flow budget, you can get an accurate snapshot of where your business stands financially at any given time and use that information to make adjustments accordingly. You can read more here: https://www.daniaaccounting.com/slider/cash-flow-budget-and-why-having-one-matters-for-your-business/
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How can you reassume a company faced with a compulsory dissolution?
Dania Accounting Podcast
When a limited liability company (in Denmark, most often ApS or A/S) fails to submit the annual report on time, the Danish Business Authority will request the Danish Maritime and Commercial High Court to dissolve the company after a while. We call this a compulsory dissolution. Sometimes, it is possible to reassume a company faced with a compulsory dissolution when specific requirements are met. You can read more here: https://www.daniaaccounting.com/slider/how-can-you-reassume-a-company-faced-with-a-compulsory-dissolution/
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How can a non-resident company pay a salary to an employee in Denmark?
Dania Accounting Podcast
How can a non-resident company pay a salary to an employee in Denmark? Sometimes a non-resident company wants to hire just a single employee in Denmark. Due to the very low scale of activities, it is sometimes not feasible to incorporate a new resident company or to create a branch office. Listen to our podcast and read more here:
info_outlineIn general, just because you issue an invoice through an ApS for your consulting services, that does not necessarily make it a company income. In some circumstances, you might have just put yourself at risk of double or even triple taxation if you are considered the beneficiary and not the ApS. Read more here: https://www.daniaaccounting.com/slider/can-a-consultant-invoice-through-an-ltd-aps-and-why-it-can-get-very-expensive-in-tax-if-you-get-it-wrong/ #tax #consulting #smallbusiness #risk #accounting