January 2019

We are not only doing accounting

We are hunting for tax deductions

The purpose of this blog is to provide a reliable source of business, tax, and accounting information. English is chosen language to ensure coverage for Danish and non-Danish readers. 

A Happy New Year present to you

January, 2019.


In the first blog back in September 2018, Get the most out of your tax deductions, we have listed tax deductible expenses for individuals. This is your turn, dear business owners, to get your New Year present from us: tax deductions for business.


Look at this cheerful photo of a Christmas party. How many things can you see that is tax deductible?

Source: Shutterstock

They are: food and drinks the people are enjoying, the furniture in the room, plates, cutleries and glasses, all Christmas decorations on the table and on the shelf, red Santa hats, and the plant behind…


Besides the cost of goods and services, you get deductions on:


  1. Depreciation: this is the most common corporate tax deduction. In Denmark the rate is 25% per year. For some businesses, the rate of depreciation is lower, or higher, all depends on the asset’s useful life and the government’s policy in the specific industry.
  2. Damaged/stolen goods
  3. Unsellable goods: this is applied to outdated goods like foods or fashion items
  4. Loss on debtors: It depends on the possibility of getting the money home from the debtors. If a debtor dies, disappears or is diagnosed with dementia, you may certainly write off your turnover.
  5. Cost of capital: for example interest on loans and fees for using the bank’s services
  6. Presents to staff: for instance, jubilee presents and Christmas presents
  7. Cost of staff’s care: health care, gym membership, massage or therapy sessions, and study and training etc.
  8. Donations to charities
  9. Donations to sport clubs and cultural institutions
  10. Expenses of using private means of transport for business purpose: not only when you use your car for business, you may also get tax deduction for using your motorbike or bicycle.
  11. Reduction of costs of heating, water and electricity/gas: This is a good new for businesses like restaurants, beauty salons and boutiques, but not for service/consultancy branch. You are not eligible for these cost deductions, unfortunately.

            And so on.


Maybe you don’t know, but the previously listed items are all tax deductible, which reduce your corporate tax. All you need is an accountant to dig out gems hidden in your books.