Taxes and Duties

Taxes and duties play an important role in the lives of both individuals and companies. Both may face issues relating to taxes and duties which require legal advice.

Over the past 30 years, TVC Law Firm has built up one of biggest legal departments in Denmark specialising in all aspects of taxes and duties.

Through organic growth, we have built up one of the leading tax law departments in Denmark, and we advise on all matters in this field as well as assisting with the conduct of all types of cases relating to taxes and duties. Consequently, we help clients in their dialogue with the Danish tax authorities (SKAT), with obtaining binding assessment notices from SKAT, with the conduct of appeals before the administrative complaint bodies (the Tax Appeals Tribunal and the National Tax Tribunal) and with the conduct of cases before district courts, the high courts and the Supreme Court in Denmark.

TVC Law Firm's tax department consists of 15 attorneys-at-law who, at any one time, are involved in conducting more than 1,200 cases in the administrative complaint system and before the courts. The cases handled by the tax department vary from small cases for individuals to huge and very complex cases for companies. Our high level of specialisation ensures that clients receive high-quality advice at a competitive price.

You are always welcome to contact TVC Law Firm for a free, no-obligation assessment of any tax-related problems or cases which you or your company may be facing. Our free assessment includes advice on:

the likelihood of a favourable outcome of the case
the cost of conducting the case
the consequences of not pursuing the case

We provide you with a non-binding proposal for the right strategy for handling the case. Our experience shows that this is essential to achieving the best possible result.

OUR ADVICE INCLUDES

Employer's Obligation to Withhold Income Tax and Social Security Contributions

Employers are obliged to withhold both income tax and social security contributions from the salaries paid out to employees. However, it is important to distinguish between employees and self-employed persons and to know the applicable rules.

Taxation of Part-time Farming Operations and Stud Farms

If you run a part-time farm from your own agricultural property alongside your salaried employment, your tax situation depends on whether you run a commercial business or it is merely a hobby for you.

Taxation of Company Cars

The rules governing the taxation of the value of company cars have given rise to a number of tax cases over the years and continue to do so.

Taxation of Principal Shareholders

If you run your business as a company, you need to pay special attention to the use of the company's assets and the transfer of funds from the company to your private finances.

Business or Hobby Business?

The business activities of self-employed business owners are characterised by being of a commercial nature, carried out for the owner's own account and risk and with the aim of making a profit. Hobby businesses, however, are run in your spare time for recreation or pleasure.

Limitation of Tax Demands

The rules on time limits are a bit of a jungle. Different time limits apply, depending on who you are and the taxation concerned. Therefore, it is always a good idea to obtain an assessment of whether the tax authorities have complied with the time limits in your case.

Reassessment of Tax, VAT and Duties

Individuals, companies and SKAT are entitled to request that tax or VAT assessments be reassessed within certain time limits.

Mileage Allowance and Deduction for Transport

Salaried employees and business owners can receive a mileage allowance or claim a deduction for transport.

VAT

Business owners must make sure that they account for their input and output VAT correctly. VAT is becoming increasingly important for Danish and foreign companies and often represents a significant expense item.

Transfer of Assets to Next of Kin

If, for example, you are considering transferring a property from your company to yourself as the principal shareholder, the transfer price must be fixed at market value.

Money Abroad

If you have assets abroad which have not been reported to the Danish tax authorities, and if you are considering reporting them to SKAT, it is a good idea to seek legal advice.

Employee Benefits

If, as an employer or employee, you enter into an employee benefits agreement covering, for example, newspaper subscriptions, free accommodation, a free car, participation in hunts, travel or similar benefits paid for by the employer, you should remember that employee benefits are taxable.

Vehicle Registration Tax and Car Leasing

SKAT is strongly concerned with vehicle registration tax cases, in relation to vehicle dealers, leasing companies and individuals.

Tax on Limited Partnership Investments

Over the past 15 years, SKAT has had a strong focus on investors in limited partnership investment projects. If you want to sell your limited partnership shares, or if your limited partnership wants to sell its assets, you should seek advice on the most tax-efficient way of proceeding.

Tax on the Sale of Real Property

Many questions of a legal nature may arise in connection with the sale of real property, among other things because the profit from the sale of real property is exempt from taxation in certain cases.

Tax Implications of Moving to and from Denmark

Regardless of whether you are moving to or from Denmark, you may find yourself needing specific tax advice and assistance.

Criminal Tax Cases

When you are charged with a tax crime, there are a number of factors to be particularly aware of.

Estimated Increase in Tax and VAT

SKAT can make an 'estimated assessment' if you (being either an individual or a company) do not submit a tax return at the end of the tax year, or if SKAT disagrees with your return.

Customs Duties

If you or your company imports goods from non-EU countries, it is important to be aware of the applicable customs regulations. It is particularly important to ensure correct customs clearance of high-value goods or imports of several consignments over time.