Abstract
The purpose of this thesis is to investigate if Udvikling ApS, which is a software development company, can obtain the benefits of research and development costs according to the Danish Tax Assessment Act § 8 B and Act § 8 X.
The reason behind exploring this subject is driven by the advantageous tax regulations associated with these expenses, including additional tax deductions within the taxable income as well as the potential for taxpayers to apply for tax credits.
The thesis encompasses an elucidation of software development and the various stages involved in the software development process. It is followed by an overview of how research and development costs are treated for tax purposes.
Building upon this analysis, the present paper delves into diverse overarching themes concerning research and development costs for tax purposes, as well as specific aspects relating to software development.
The general subjects covered encompass an exploration of the correlation between the overall cost deduction principle outlined in Danish tax laws and the delineation of research and development costs as stated in the Danish Tax Assessment Act § 8 B. Subsequently, an examination is conducted to determine which legal sources carry the most weight in Danish tax laws, in order to establish the criteria against which research and development activities should be compared.
When all information is gathered, the final goal for this thesis is to provide Udvikling ApS and its shareholders with the best possible knowledge about whether their company can obtain these tax benefits.
| Educations | Graduate Diploma in Accounting and Financial Management, (Diploma Programme) Final Thesis |
|---|---|
| Language | Danish |
| Publication date | 1 Jan 2023 |
| Number of pages | 75 |