Establishment saving account and start-up account

This scheme is for you who do not pay top-bracket tax.

Contributions made to a business establishment savings account represent a deductible value of approx. 27%. And when you withdraw your contributions you are entitled to tax relief on part of the expenses or investments that you pay/make with the money withdrawn. The actual tax relief depends on when you made the contributions.

You are eligible for tax relief on contributions made in the income year in which you established your business and the 4 subsequent income years.

Contributions entitling you to tax relief in 2023 must have been made to the account in the period of 16 May 2023 until 15 May 2024. There will be no exemption to this deadline and holidays or closing days do not extend the deadline. 

You obtain your tax relief by entering the total contributions in

your tax assessment notice or in your extended tax return in box 57

Please contact your bank for further practical details.

You are free to move your account from one bank to another.

If you change your mind and do not start your own business

You will be liable to pay supplementary tax on the contributions you have not used. Supplementary tax on the saved amounts is increased by 3% for each year (5% per year for contributions made before 2002) since the year the contribution was made.

This scheme is for you who pay top-bracket tax. The tax relief rate for contributions made to a business start-up account is approx. 52%. You are not entitled to tax relief on the expenses or investments that you pay/make with the money withdrawn.

You are eligible for tax relief on contributions made in the income year in which you established your business and the four subsequent income years.

Contributions entitling you to tax relief in 2023 must have been made into the account in the period of 16 May 2023 until 15 May 2024. No exceptions can be made with regard to the contribution deadline, and the deadline cannot be extended because of holidays and closing days.

You obtain your tax relief by entering the total contributions in your tax assessment notice or in you extended tax return in box 57

Please contact your bank for further practical details.

You are free to move your account from one bank to another.

If you change your mind and do not start your own business

You will be liable to pay 52.5% tax (60% on contributions made in 2009) on the original contributions and 3% supplementary tax for each year since the year the contribution was made.

You can deposit 60% of your net salary into the account each year. However, you need to deposit a minimum of DKK 5,000 and a maximum of DKK 250,000 of your net salary a year.

Examples:

• Net salary of DKK 200,000 entitles you to make a deposit of up to DKK 200,000
• Net salary of DKK 300,000 entitles you to make a deposit of up to DKK 250,000
• Net salary of DKK 800,000 entitles you to make a deposit of up to DKK 480,000.

2 conditions for you and your business to meet

For tax purposes, you need to meet 2 conditions in order for us to consider you to have started a business:

• You must invest at least DKK 97,400 in 2023 (DKK 100,900 in 2024).
• You or your spouse must put significant efforts into the daily running of the business. As a rule of thumb, significant efforts means at least 12 hours a week (50 hours a month) of active involvement.

What can the money be used for?

Your contributions may only be used to setup and invest in your business, meaning:

• buy depreciable assets such as buildings and machinery
• pay salary and rent and other operating expenses which are tax deductible
• cover expenses relating to testing and research, etc.
• buy shares in public limited companies and private limited companies in order to establish a business in corporate form.

How to withdraw contributions

1. Complete form 02.007 (Notice of acquisition of assets in relation to withdrawal from business establishment account) (in Danish)

2. Submit the completed form to your bank

You can withdraw money from your business establishment savings account or business start-up account when you start your business. You need to withdraw the contributions no later than nine years after the end of the income year when the business was started or before the end of the income year you become entitled to state pension.