Beskatning af selvstændige erhvervsdrivende: Valg af beskatningsregler mellem personskatteloven og virksomhedsskatteloven

Lars Kirkeskov Pedersen

Student thesis: Master thesis


Once a year self-employed Danish taxpayers have to choose which taxation scheme they want to use for taxation. They can choose between those three taxation schemes: The personal taxation scheme The business taxation scheme The return on capital scheme This study is meant to describe these three taxation schemes, and analyze the difference between them, and establish guidelines for the selection of taxation schemes. This study targets advisors who shall help the self-employed to choose between the taxation schemes, and therefore already know something about taxation. If the self-employed don’t choose a taxation scheme, the personal taxation scheme will be used. The personal taxation scheme is used by all Danish wage earners, and are therefore also used on self-employed unless they choose otherwise. The personal taxation scheme divides the income in two main groups: into personal income and capital income. This split has an effect on the three taxation schemes. The personal taxation scheme describes, that all income that isn’t capital income is personal income. Capital income is typical interest. The net positive capital income is less taxed than personal income, but at the same time it gives a lower deduction if there is net positive capital income, rather than if it has been deduct in personal income. By using the business taxation scheme in place for the personal taxation scheme, is one of the differences, that the commercial interest will be calculated/deducted from personal income rather than capital income. This ensures 100% deduction for interest costs. Another advantage is the return on capital. The return of capital is calculated on the basis of a calculated return on capital base. The return of capital are deducted from personal income and added to the capital income, which means moving income to a lower taxation. Furthermore, the business taxation scheme allows two different methods for short-term relief. One is the accumulated profits, which saves the difference between net profit and net withdrawals in an income year. This savings will require an advance tax of 25%. The final taxation will happen in one or more income year(s) in which savings is withdrawal again. The other option is to set aside for later withdrawal. This will typically occur in an income year in which there is no income right up to the upper tax limit. In this case the self-employed choose to be taxed more than necessary. The more income, that the self-employed have chosen to be taxed, can then be withdrawn without tax in future income years. If the return on capital scheme is chosen, is the commercial interest handled by the same method as for the personal taxation scheme. The difference between the personal taxation scheme and the return of capital scheme is that in the return on capital scheme there will be calculated a return on capital, like the business taxation scheme. However, the return on capital will typically be larger in the return of on capital scheme, due manner return on capital base is calculated in the two schemes. The return on capital scheme, also allows the self-employed to use short-term relief. This is a short-term closure. The short-term closure cannot exceed 25% of the business earnings before interest and the self-employed have to pay an advance tax of 25% of the short-term closure. The rest of the short-term closure is tied to a bank account, and therefore requires 100% liquidity. The final taxation, in this scheme, also occurs when the self-employed withdrawal the short-term closure. The conclusion, on whether there may be a final answer on which set of tax rules to be applied, is that such an answer cannot be given in principle. It should be assessed in each situation, because of the many factors that come into play, then the self-employed have to chose which taxations scheme to be used. Overall, when choosing a taxation scheme, the following conditions should be in mind as a staring point: Administration Interest and return on capital Short-term compensation Liquidity Deferred tax Taxation scheme used the year before

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2012
Number of pages102