Beskatningsmuligheder for en selvstændig erhvervsdrivende under hensyntagen til salg af virksomhed: Virksomhedsordningens fordele og ulemper i forhold til personskatteloven Muligheder for håndtering ved salg eller ophør af virksomhed Gennemgang af konkret casevirksomhed

Mischa Tan Madsen

Student thesis: Diploma thesis

Abstract

From the income year 1989 and forward, it has been possible for tax liable individuals carrying out activities as self-employed to choose taxation under the special tax regime for self-employed individuals under the Business Tax Scheme. Those taxation rules are in many ways similar to the taxation rules addressed to companies, which has been a huge advantage for many self-employed individuals since 1989. The problem with the Business Tax Scheme is that it is difficult to understand, and the need for an accountant is inevitable. The administrational burden is also greater in this scheme, why many selfemployed individuals still choose not to use it, even though it could save them a lot of tax money. In this thesis, I will first define the concept of a self-employed individual. The concept has not been defined in the Danish tax legislation, why a definition is necessary to understand to whom it is possible to choose the taxation rules under the Business Tax Scheme. Secondly I will account for the main rules in the Danish Personal Income Tax Act and the rules under the Business Tax Scheme. The two different tax regimes will be compared in order to highlight advantages and disadvantages. The purpose of the comparison is also to identify significant differences in the two tax regimes, including the accounting requirements, treatment of interest, the possibility for savings within the company etc. Briefly, the Danish Personal Income Tax Act is much more easy to use and understand, but has limited possibilities regarding the taxation. For example it is not possible to save profit within the business in contrast to the Business Tax Scheme. This means, that you under the Danish Personal Income Tax Act have to pay tax from all the income earned at once, instead of being able to defer some of the tax for later years, when the income is actually needed. In addition it is only under the Business Tax Scheme that it is possible to fully deduct interest on contributed liabilities. To give a better understanding of the differences in the two tax regimes, I have on the basis of a fictive case analyzed the income for Kirsten Madsen and her business for year 2011 in both schemes. I have calculated Kirsten Madsen’s final tax in both schemes, and compared pros and cons in her situation. Kirsten wants to sell her business in 2015. The taxation regarding a sale of the business is therefore analyzed in the thesis, and it has been discussed, whether it matters or not, which tax regime Kirsten choose in 2011.

EducationsGraduate Diploma in Financial and Management Accounting, (Diploma Programme) Final Thesis
LanguageDanish
Publication date2012
Number of pages82