Shareholder remuneration

As compensation for capital contributions to a Danish limited liability company, the shareholder receives shares in the company. The Articles of Incorporation may also provide for additional compensation in the form of bonds issued by the company.

A cash contribution to capital does not cause any tax problems for a Danish limited liability company. If the value of the contribution exceeds the nominal value of the shares, the company does not have to pay tax on the excess, treating it as a bonus. For more information, see the Corporate Income Tax Act, Article 13, paragraph 1, item 1.

In a situation where it is the tax authorities that determine the value added in connection with a non-cash contribution, the company does not have to tax this increase in value compared to the established transaction totals. This is usually seen as compensation to shareholders in the form of shares whose value exceeds the original issue price. What's more, the company can write off income on the basis of the increased value, even if the articles of incorporation are not amended and the added value is not included in the company's official accounting records.

If the established transaction amounts exceed the value of the assets, the company cannot write off the overpayment it has paid. This is important for assessing the company's financial and tax situation and ensuring its proper operation.