When you start a business, there are several aspects of taxes that you need to be aware of.

Here is an introduction to the most basic information.

Who needs to register a business?

If you have income as a business owner or expect to have income, you can start a business. You can start a business as a sole proprietor or together with others in a partnership or corporation.

You can run the business by yourself or have employees.

The creation of a business is done through the CVR Register, which is mandatory for all businesses.

You are entitled to tax deductions for expenses related to generating income in your business. As a business owner, you are taxed on the profit from your business.

As a business, you have several tax-related options and obligations:

• Advance registration in the fall before each tax year begins. When you advance register, you provide information to the Tax Agency, allowing them to assign the correct deductions and B-tax percentage for the following year. If your business situation changes, you can update the advance registration during the year.
• Tax return before May. After each year, you must file a tax return for your business income and expenses. Along with the tax return, you must submit financial statements. It is mandatory to submit a tax return and financial statements. If you fail to file a return, you will receive an additional tax penalty of DKK 200 per day, up to DKK 5,000. If you do not file a return, the Tax Agency will estimate your income. Remember, you are obligated to report all income correctly. Providing false information can result in a tax fine.

In addition to submitting a tax return, as a business with employees, you must also submit monthly reports to the Employer Register. At the end of the year, you must submit a summary of wages, pensions, AMA, etc.