Denmark

Denmark's Rankings
CategoryRankScore
Overall Rank2460.14
Corporate Taxes1658.96
Individual Taxes3449.62
Consumption Taxes1770.04
Property Taxes874.77
International Tax Rules2960.7

Denmark ranks 24th overall on the 2019 International Tax Competitiveness Index, one place worse than in 2018.


Strengths

  • Compliance times associated with corporate, consumption, and individual taxes are all below the OECD averages.
  • Denmark has a territorial tax system, exempting both foreign dividend and capital gains income for its treaty partners and other European countries.
  • Property taxes are modest, and Denmark allows costs associated with improvements to be deducted.

Weaknesses

  • In addition to a top marginal tax rate of 55.9 percent, the personal income tax rates on dividends and capital gains are both at 42 percent, well above the OECD averages of 23.8 percent and 19.6 percent, respectively.
  • Net operating losses can be carried forward indefinitely but are limited to 60 percent of taxable income.
  • Denmark uses First-In-First-Out for assessing the cost of inventory for tax purposes.

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