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Regnskab
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The Special Scheme for Businesses offers a presently lower taxation of the part of the profit that retains in the company.
The Special Scheme for Businesses is a complex set of tax rules, which is optional for the taxpayers to make use of.
You can choose this option (on an annual basis) when you file your tax return.
The Special Scheme for Businesses is an exception from the main rule that tax on a company’s net income is calculated the same way as tax on earned income.
Profit Retains in Business
The main tax rule does not distinguish between whether the money earned in the company is withdrawn for private consumption or retains in the company.
The Special Scheme for Businesses a presently lower taxation of the part of the profit that retains in the company. This is a great advantage if part of the company’s profit is to be ploughed back due to growth.
Interest Expenses = Operating Costs
Another, often crucial, advantage of the Special Scheme for Businesses is that the company’s interest expenses is taxed equally with the company’s other operating costs.
The general rule is that the company’s interest expenses are allowed in the same way as private interest which do not generate as big an allowance as the company’s operating costs.
Thus, if your company struggles with considerable interest expenses is it a good idea to make use of the Special Scheme for Businesses.
Capital Yield
Finally, if you have tied-up capital in the company you can calculate a so-called yield from this capital and have an equal part of the profit taxed as capital yield (= interest income) in stead of as personal income (= earned income).
The Special Scheme for Businesses is complex to apply. Practically everybody making use of it does so with the assistance of an accountant for the making of the tax accounts.
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