#

Ease of Doing Business in

Denmark

Denmark Download Profile (1691.4KB, pdf)
Region OECD high income
Income Category High income
Population 5,676,002
GNI Per Capita (US$) 58,590
City covered Copenhagen

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 3 2 down
1
84.87 84.85 down
0.02
Starting a Business 24 22 down
2
94.07 94.04 up
0.03
Dealing with Construction Permits 6 6
-
84.69 84.63 up
0.06
Getting Electricity 14 12 down
2
90.20 90.19 up
0.01
Registering Property 12 9 down
3
89.88 89.88
-
Getting Credit 32 29 down
3
70.00 70.00
-
Protecting Minority Investors 19 15 down
4
71.67 71.67
-
Paying Taxes 7 7
-
92.11 92.11
-
Trading across Borders 1 1
-
100.00 100.00
-
Enforcing Contracts 24 25 up
1
71.23 71.23
-
Resolving Insolvency 8 9 up
1
84.86 84.78 up
0.08

DB 2017 Rank:

7

DB 2016 Rank:

7

Change in Rank:

0

DB 2017 DTF (% points):

92.11

DB 2016 DTF (% points):

92.11

Change in DTF (% points):

0.00

Indicator Denmark OECD high income
Payments (number per year) info_outline 10 10.9
Time (hours per year) info_outline 130 163.4
Total tax rate (% of profit) info_outline 25 40.9
Postfiling index (0-100) info_outline 92.6 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 3 25 23.5% taxable profits 19.01
Property tax 1 online 3.4% of land value and 0.98% of bulding value value of property 2.67
ATP (mandatory pension - employer contribution) 0 jointly fixed amount (DKK 4,700 per employee) fixed amount 1.42
Payroll tax, paid by employer 0 jointly fixed amount (DKK 3,750 per employee) fixed amount 1.13
Employer paid - Social security contributions 1 online 65 fixed amount (DKK 2,160 per employee) fixed amount 0.65
Environmental tax 1 fixed amount (DKK 475 per ton for waste) ton of waste 0.06
Vehicle tax 1 fixed amount (DKK 1000 - 4,500) Weight of vechicle 0.02
Tax on insurance contracts 1 1.1% Insurance premium 0.01
Social pension contributions on employees 0 jointly 8% gross salaries 0.00 not included
Social security contributions on employees 0 jointly DKK 1,080 fixed amount 0.00 not included
Value added tax (VAT) 1 online 40 25% value added 0.00 not included
Fuel tax 1 DKK 3.495 per liter included in the fuel price 0.00 small amount
Totals: 10 130 25
  • Answer
    Profit tax (% of profit) 19.0
    Labor tax and contributions (% of profit) 3.2
    Other taxes (% of profit) 2.8
    Answer Score
    Postfiling index (0-100) 92.6
    VAT refunds 84.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process None
    Likelihood of VAT audit Likely
    Time to comply with VAT refund (hours) 8.0 84.0
    Time to obtain a VAT refund (weeks) 7.1 92.5
    Corporate income tax audits 94.0
    Does corporate income tax exist? yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 4.8 94.0
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Tax Appeals Authority (Skatteankestyrelsen)
    Is the appeal authority independent? Independent department outside tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/in printed publication/in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.