Being self-employed in Denmark, you have three different options, when it comes to paying tax: Personal Income Tax Act, Return on Capital Scheme or the Business Taxation Scheme. In this thesis the differences of the three tax opportunities will be described and discussed. The thesis is set to guide accountants, when it comes to advising Danish self-employed individuals. What is the best and most preferable way for the self-employed to pay tax? First the three tax schemes are described with their significant rules and laws. Then the tax schemes are compared with the use of relevant calculations and examples. There will be used a detailed example in the thesis, where a case company is to find its most preferable tax scheme. The self-employees company will be described and through analysis and calculations - the tax scheme with the most advantages will be pointed out. The case company is a plumbing company that has existed since 2007. The owner has five employees, whereas three are occupied with operations and two are administrative workers. The self-employed only works in the plumbing company and receives no other salary. Calculations are made to clearly show, what the self-employed will pay in taxes if he was to use the Personal Income Tax Act, the Return on Capital Scheme or the Business Taxation Scheme. The calculations are based on the official Danish tax rates of 201O. The examples will show that this case company, the plumbing company, will get the most profitable tax rates when using the Business Taxation Scheme. This is mainly because of the high net value of negative capital and because there is calculated a return on capital which reduces the personal income. Further more there is potential for savings in the company. These arguments, among others, makes The Business Taxation Scheme best suited for this company.
|Uddannelser||Cand.merc.aud Regnskab og Revision, (Kandidatuddannelse) Afsluttende afhandling|