Why is shareholder loans in Denmark a really bad idea?

Shareholder loans can be anything from payments done using the company credit card to pay for a private cost on behalf of a shareholder, to salary advances paid to a shareholder when a payslip has not yet been made, to dividends that are distributed without complying with the Companies Act or actual loans issued to the shareholder. According to the Companies Act, then a shareholder loan can be legal if certain formalities are in order. However, if the loan is issued to a shareholder who is a physical person and not a company it will be double-taxed regardless of being legal or not. Yes, double-taxed! In reality, making shareholder loans a really bad idea! If you have received a shareholder loan by mistake and want to avoid being double-taxed, there is a way however, that can help repair the unfortunate shareholder loan. Read more here:

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Why is shareholder loans in Denmark a really bad idea? is an episode from Accountant in Copenhagen giving accounting advise on tax, VAT, e-conomic, Dinero, Billy´s Billing by Dania Accounting.

This episode is 00:07:17 long.

This episode was published on Jan 10, 2022.

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