The deadline for reporting and paying outstanding tax is 1 July 2019.

You do so in E-tax for businesses (TastSelv) where your tax return is available.

Once you have completed and accepted your tax return, you will receive your tax assessment notice, which tells you if you are entitled to a tax refund or if you have to pay outstanding tax.

Enter the profit or loss you expect to have in your preliminary income assessment and pay tax on a regular basis. You can change your preliminary income assessment at any time if your profit or loss changes.

 

Change your preliminary income assessment

See your tax return

Paying tax on your business on a regular basis

You pay tax on your business on a regular basis by entering your expected profit of loss in your preliminary income assessment.

You must pay tax on a sale when you issue the invoice. Even if you have not been paid. This way you ensure that your tax is paid on a regular basis.

Adjusting according to your financial situation

Please note that you can change your preliminary income assessment if the profit or loss of your business to changes. The more precise your preliminary income assessment is, the more you are likely not to have to pay outstanding tax at the end of the year.

In March, you file your final proft or loss in your tax return. Once you have completed and accepted your tax return, you will receive your tax assessment notice telling you if you are entitled to a tax refund or if you have to pay outstanding tax.

Changing your preliminary income assessment

You are taxed on a sale at the time you issue the invoice, even if you have not been paid yet. This is a way of ensuring that your tax is paid on an ongoing basis.

You can change your preliminary income assessment if your business profit or loss changes. If you adjust your preliminary income assessment to be as precise as possible, you will reduce the risk of having to pay outstanding tax at the end of the year. Your tax return is available in March. Once you have completed and accepted it, you will see your tax assessment notice, which states whether you have paid too little tax of if you are entitled to a refund.

1 July deadline

You should file your tax return, including your final profit or loss, by 1 July 2019.

Please note that you must complete and accept your tax return even if you have nothing to add to the information listed in your service letter.

You have to file your tax return if you:

  • are self-employed

  • have foreign income or property

  • own rental property that you do not live in personally

  • are an artist and are covered by the income equalisation scheme for artists

  • operate with an irregular financial year

  • own shares in investment project partnerships (ordinary or limited) (anparter) which are not subject to the rules governing such shares.

 Step-by-step guide to filing your tax return

  1. Log on using your NemID.
  2. Click 'Ret årsopgørelsen/selvangivelsen' (Change your tax assessment notice/tax return).
  3. Certain figures in your tax return will be pre-printed. Consider if these figures are correct and make relevant corrections.
  4. Scroll down to 'Virksomhedsoplysninger' (Business information). You need to enter your business profit in box 111 or your loss in box 112. Check to see if you need to complete other relevant fields.
  5. Scroll down to ‘Regnskabsoplysninger' (Accounting information) and click ‘Vis' (Show). Complete relevant fields.
  6. Click 'Gem' (Save). You will be asked if you want to enter information for other businesses. If not, click 'Tilbage til Ret årsopgørelsen/selvangivelsen' Return to Change your tax assessment notice/tax return'.
  7. Consider if you need to enter any other information in your tax return. Remember that your tax return applies to both your business and your private financial situation.
  8. 'Godkend' (Accept) your tax return at the bottom of the page.
  9. Once you have completed your tax return, you will see a receipt and you can see your tax assessment notice. If something is incorrect, you will be prompted to complete missing information before your tax assessment notice can be generated.
  10. You tax assessment notice will show if you have paid too much tax and are entitled to a refund of overpaid tax or if you have paid too little tax.

If information is missing in order for the system to generate your tax assessment notice, you will be prompted to enter the relevant information.

See how to file your tax return in the video below.

If you forget to enter required data or if the entered data is incorrect, you will be asked to enter/correct the relevant data before a tax assessment notice can be generated.

See the video below, How to do your tax accounts, to find the figures you need to file in your tax return.

Accounting information

You should state the business result, interest and certain accounting records. If your turnover is less than DKK 300,000 you only have to state the following:

  • CVR no. (business reg. no.).
  • VAT payable or VAT receivable, if you are registered for VAT.
  • If your business is exempt from submitting accounting records - you do so in box 301 or possibly in box 302.
  • Information about accounting assistance.

If your turnover has exceeded DKK 300,000, you should provide more accounting information. Please see this guide (in Danish) for further information about such accounting information.

If you cannot access the business fields

If you do not have access to the business fields when you want to file the tax return, you need to do as follows:

  1. Log on to E-tax for individuals (TastSelv Borger) using your personal NemID.
  2. Select 'Ret årsopgørelsen/selvangivelsen' (Change your tax assessment notice/tax return).
  3. At the bottom of the page below 'Virksomhed' (Business) you select 'Yes' that you have a business and then click 'Fortsæt' (Continue).
  4. Then you will have access to enter your business results in the business fields.

If you are no longer self-employed or rent out property

If during 2018 you stopped being self-employed, renting out property or other activities requiring you to submit a tax return, you should still submit the tax return.

  • In box 71, you should state that your business has been closed, and in box 111 you enter your profit or you enter your loss in box 112.
  • You should deregister your CVR number at www.indberet.virk.dk.
  • In your preliminary income assessment for 2018, you should delete amounts relating to self-employment in fields 221 and 435 and any other relevant fields. Otherwise, you may have to file a tax return again next year before a tax assessment notice can be created for you.

Change your preliminary income assessment

Closing down a business

If you want to apply to extend the deadline for filing your tax return

From the middle of March until the deadline on 1 July, you can apply to extend the deadline for filing your tax return in case of special circumstances.

If you do not meet the filing deadline

If you do not meet the filing deadline, you will be charged a penalty for late filing of DKK 200 for each day you miss the deadline. However, the maximum of such a penalty is DKK 5,000. If your taxable income is less than DKK 498,900 (2018), the penalty is DKK 100 for each day you miss the deadline and maximum DKK 2,500.

You can apply to be fully or partially exempt from this penalty if special circumstances are the reason you have not filed your tax return.

If so, you need to inform us of such special circumstances and submit relevant information for us to consider.

Apply for full or partial tax exemption (Søg om skattefritagelse) (in Danish only)

As an alternative to paying tax according to the general tax rules, you can choose to be taxed according to the return on capital taxation scheme or the business taxation scheme. Both schemes require lot of accounting work on your part, and it is usually best to leave it to an accountant.

Business taxation scheme

The business taxation scheme enables you to:

  • have your business interest expenses taxed as personal income and not as capital income. By doing so you pay less labour market contribution (am-bidrag) and possibly less top-bracket tax than according to the general tax rules.
  • save up in your business against paying tax on an ongoing basis. This means you can save up in good years and withdraw saved up profits in bad years.

If you save up in your business, you will be taxed at a rate of 22% on the part of the profit that you save up. When you withdraw an amount from the savings, you are taxed as for personal income, and the tax you have already paid will be deducted.

If you opt for the business taxation scheme, you will have to separate your personal finances from your business finances. You can choose to be taxed under the business taxation scheme in your preliminary income assessment by ticking field 184, but the actual choice is not made until when you complete your tax return (by ticking box 147).

Return on capital taxation scheme

The return on capital taxation scheme may be a good alternative to the business taxation scheme as this scheme is easier to manage.

The return on capital is calculated and it is taxed as income from capital and not as personal income. By doing so you pay less labour market contribution (am-bidrag) and possibly less top-bracket tax according to the general tax rules.

Return on capital is the part of your profit that you can transfer from your personal income to income from capital. If your profit is less than your return on capital, you can only transfer an amount corresponding to the profit.

You can choose to be taxed under the return on capital taxation scheme in your preliminary income assessment by ticking field 184. However, you do not actually choose the scheme until you complete your tax return which is available in early March. You should complete box 141 under ‘Virksomhedsoplysninger' (Business information).

A company is taxed separately on its profit/loss and you will be considered an employee.

Read more about companies and funds (only available in Danish).

Please see our legal guide (in Danish) for further legal information.