Denmark
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 28 | 57.94 |
| Corporate Taxes | 16 | 61.15 |
| Individual Taxes | 34 | 42.97 |
| Consumption Taxes | 17 | 68.9 |
| Property Taxes | 16 | 62.93 |
| Crossborder Taxes | 30 | 63.22 |
Denmark ranks 28th overall on the 2021 International Tax Competitiveness Index, the same as in 2020.
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 against corporate income tax.
Weaknesses
- In addition to a top statutory personal income 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 24.1 percent and 19.1 percent, respectively.
- Net operating losses can be carried forward indefinitely but are limited to 60 percent of taxable income if they exceed a certain amount.
- Denmark uses First-In-First-Out for assessing the cost of inventory for tax purposes.
Learn more about the tax system in Denmark