Category Taxation in Denmark

Solar Tax Dodged in Denmark

August 27, 2018 Taxation in Denmark

solar power generationCOPENHAGEN – Local municipalities across Denmark are skipping out on taxes owing for the solar energy that they have generated.

A new report issued last week in Denmark indicates that a significant number of solar power cells installed by local municipalities around the country are not properly registered, and result in underpaid taxes.

Under the current legal requirements, if solar panels are installed for mass power generation as part of a new development or a significant renovation, then those panels must be administered in a corporate entity that is separate to the one administering the rest of the development.

The power generated using the panels must then be purchased by the first entity, and the appropriate tax rates must be applied to the sale.

By not separating out the administ...

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Danes’ Tax Cuts Funded by Migrants

February 9, 2018 Taxation in Denmark

Danish taxesCOPENHAGEN – Danish citizens will soon enjoy a tax cut, however, it will be funded by recent migrants and those who cannot speak Danish.

Earlier this week an agreement was reached between political parties in Denmark, which will lead to lower tax obligations for Danes by shifting a portion of the tax burden to migrants.

The government’s intended tax cuts are expected to result in a drop in tax obligations of between DKK 1 850 and DKK 3 150 per year.

The tax cuts will be funded by restricting access to social welfare, mainly be ensuring that welfare can only be received by individuals who have lived in Denmark or another EU country for 7 of the last 8 years.

In addition to the welfare changes, the government hopes to find extra revenues by introducing a cost to the Danish language clas...

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Car Tax in Denmark Drops to 100%

August 31, 2017 Taxation in Denmark

Cars in DenmarkCOPENHAGEN – Cars in Denmark are about to become significantly cheaper, with taxes falling to only 100 percent.

On August 29th the government of Denmark announced that the tax rate applied to the sale of cars will soon be slashed, a moved which could lead to a significant drop in the cost of owning a motor vehicle.

Cars sold in Denmark currently face a tax rate of 180 percent.

The high tax rate has resulted in a situation whereby cars sold in Denmark are some of the most expensive in Europe, with marked differences in pricing between Denmark and its nearest neighbours.

The new rate which will be applicable to the sale of cars will be 100 percent.

The government has published the potential future prices of some popular car models, showing that the VW Golf and VW Passat could fall in pric...

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Wealthy Danes Dodge a Third of Their Taxes

June 2, 2017 Taxation in DenmarkTaxation in Norway

Tax Evasion in ScandanaviaCOPENHAGEN – Wealthy taxpayers are much more likely to avoid significant portions of their tax obligations, with the wealthiest people in Scandanvian countries skipping out on nearly a third of the taxes they owe.

Late last month researches from Norway and Denmark published an academic article showing that the propensity to evade personal tax obligations rises steeply with wealth.

The researchers used data made available in the Panama Papers and cross-referenced them with information made publically available by local tax authorities about individual taxpayers, in order to estimate how much tax was evaded by wealthy individuals.

It was found that in Norway, Sweden, and Denmark the richest 0...

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Calls Raised for Tax on Beef

April 28, 2016 Taxation in Denmark

COPENHAGEN – A Danish think tank is claiming that a tax on beef will cut greenhouse gas commissions worldwide.

Earlier this week the Danish Council of Ethics, an independent group established by the national government, called for the implementation of a climate tax on red meats.

The tax is aimed at encouraging reduced consumption of red meat among Danes, in an effort to simultaneously improve the health and diets of taxpayers, while also reducing the impact of beef production on the environment in Denmark and abroad.

It is estimated that the production of one kilogram of beef for consumption requires as much as 43 000 litres of clean water, and, additionally, cattle are directly responsible for the release of as much as 10 percent of greenhouse gas emissions globally.

The proposed tax ...

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