Beskatning af personalegoder: Med fokus på fri bil, fri telefon, fri bolig og fri sommerbolig

Lennart Sværke-Jessen & Daniel Lindebæk Hansen

Student thesis: Master thesis


Summary: The Danish tax burden is high, and therefore staff benefits are to a wide extent used as supplementary remuneration of employees. This may be in the form of either minor benefits, such as employer-paid telephone, or major benefits, such as company car or employer-funded all-year residence or summer residence. The objective of this thesis is to address the legislative basis of taxation of selected staff benefits; how and when are they taxed for tax payers with controlling interest and for tax payers without controlling interest? The rules of taxation of income are based on sections 4-6 of the Danish Act on Taxation of Income and Property. Thus, section 4 provides that all income is taxable irrespective of whether it is received as money or as benefits in kind. Therefore, as a general rule, staff benefits received by employees are taxable and should be taxed at the valuewhich the benefit represents to the employee. The legislative basis of the taxation of staff benefits comprised by this thesis is found in section 16 of the Danish Tax Assessment Act, which addresses the individual staff benefits and their taxation. Common to the respective benefits is that taxation is made of the disposal of the benefit, not of its actual use. As the right of disposal forms the basis of taxation, it is of decisive importance whether or not the tax payer has controlling interest. This is due to the assumption that for tax payers with controlling interest, the company’s assets are usually at their full disposal, which means that the assets may be used privately by the tax payers. The fact that taxation is made of the right of disposal means that it is difficult for the individual tax payer with controlling interest to prove that a given asset has not been placed at the disposal for private use. A direct consequence of this is that goods which have not been used by the tax payer might be subject to taxation. As it is impossible to determine a precise market value of all staff benefits, the basis of taxation is in several cases determined on the basis of schematic rates, which eliminates the degree of estimate, but on the other hand increases the risk of more imprecise taxation. Consequently, a higher or a lower amount may be taxed than what is actually represented by the benefit. For the staff benefits selected – company car, employer-funded all-year residence or summer residence and employer-paid telephone – the thesis will discuss and analyse the rules, including who is comprised by the rules, the calculation of taxable value and the situations in which the tax payer will be comprised.Moreover, the more stringent rules applying to principal shareholders will be described.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2014
Number of pages117