Consider your tax before New Year
It is often worthwhile to consider the possibilities of saving or postponing tax before New Year. The following are some areas that are relevant to look at.
Purchase of operating equipment and cars
If the business is about to acquire machinery, cars etc., it will often be a good idea to make that purchase before the New Year. This is because you can write off 25 percent already in the year when the operating equipment is purchased and delivered to the business, regardless of when during the year the purchase is done. In the case of minor assets, furniture and the like that cost less than 12,600 DKK pr. pcs., the entire amount can be deducted in the year of acquisition.
Insurance / pensions, incl. 30-percent scheme
You may obtain tax savings and/or tax deferrals if you transfer an amount to your pension scheme or life insurance scheme.
If you pay the top tax rate, you can save tax by depositing on a rate scheme. From 2014, there is a ceiling of 50,900 DKK annually on deposits to rate pensions. You can deposit an additional amount to an annuity pension.
Self-employed can deposit and deduct up to 30 percent of their net profit (before interest, etc.) on a rate pension or an annuity pension (how is described in another article).
Withdrawals of the business
If you use the company tax scheme, the size of the withdrawals of the business will, in some cases, be very important for this year’s taxes. It is therefore important that the business does not withdraw excessive amounts. In some cases, it is a good idea to optimize up to the limit of the top tax rate.
Save interest by paying outstanding tax before the 31 December 2014
If you expect to have to pay outstanding tax, it might be worthwhile to make a voluntary payment of outstanding tax before New Year. If you pay the outstanding tax before the 31 December 2014, you avoid interest and surcharges on the outstanding tax. If you pay the outstanding tax between the 1 January 2015 and the 1 July 2015, you will have to pay a percentage surcharge of 5%. If you do not pay the outstanding tax before the 1 July 2015, the first 18,700 DKK (2014 figures) will be included in the advance tax payment for 2016 with a surcharge of 5%. If the outstanding tax exceeds 18,700 DKK, the surplus amount will be charged in three installments with a surcharge of 5%.