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- The Business Scheme
The Business Scheme Can Give You a Deduction on Interest Expenses in the Top Tax Bracket
1. The tax value of the business' interest expenses
There is a possibility of tax savings here and now by applying The Business Scheme. One way to save is on the tax value of the business’ interest expenses.
The tax value of interest expenses amounts to approx. 56.5% using The Business Scheme, if your income falls into the top tax bracket. If you do not use The Business Scheme, the tax value of interest deductions amounts to only approx. 33.6%. Thus, this typically results in tax savings of 22.9%. If you have interest expenses of DKK 100 000, your tax savings will be up to DKK 22 900 using The Business Scheme.
2. To a certain extent, you can deduct interest from private debt in the corporate scheme
It is legal to include private debt in The Business Scheme, thereby obtaining a deduction for interest on the debt in personal income. However, some tools have been incorporated into the legislation that in some situations "neutralize" the value of this speculation.
If too much private debt is added to The Business Scheme, you will not be able to save using the scheme. In addition, you risk having to include a so-called “interest correction” in your personal income.
As long as you stay within the statutory limits, the tax savings will still be up to 22.9% of interest on debt included in The Business Scheme, as described above.
It is only important that The Business Scheme is used correctly and that private debt is also included correctly and appropriately.
We do not assume responsibility for any transactions that may be made based on the information above, without prior individual advice. Likewise, we assume no responsibility for any errors or omissions.