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Income tax and your biz
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The Danish central government raises most of its fiscal revenue through personal income taxation.
You can gain a personal income in several ways:
- Profit from running your own business
- Pay earned as employee
- Transfer income such as welfare and unemployment benefits from the central government
Big Brother is watching you
The Danish taxation system is proportional - the more you earn, the more tax you must pay.
Everybody living in Denmark is registered in a central register. So are most of the information that will affect your income - i.e. information from private or public employers, social authorities, banks, etc. Thus, all income is registered and all Danes must pay tax.
Taxation of business owners
Being a business owner, your taxable income is the company´s net income, i.e. the company´s profit after deduction of total operating costs.
As a business owner you obviously do not have an employer who automatically calculate and withhold your tax payable. You must, based on expected earnings of your company, notify the tax authorities about your taxable income.
Thomsen
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