Registration requirements and fees
Are there any registration requirements, or any fees/taxes payable?
Generally, companies must register their game activities with the Danish tax authorities, if the game involves the payment of duties.
Note: Prize promotions which are:
- Without stakes
- Based on chance
- Available to the public
and which only offers prizes with a value of US$30 or less do not require registration.
The tax consequences must always be considered and specialist advice should be sought.
In terms of payable taxes, payable taxes depend on whether the prize promotion is based on skill or chance.
Where winning the prize is based on skill, the prize is considered income for the winner and the winner must pay income taxes.
Where winning the prize is based on chance and where the prize promotion is without stakes and available to the public the prize is not considered an income for the winner, and as such the prize does not result in income tax for the winner. The promoter is, however, obliged to pay a gain duty.
Note: If the prize consists of the company's own products, the duty is calculated based on the sales value.
Where winning the prize is based on a combination of chance and skill and where the prize promotion is with stakes the prize is also subject to a gain duty, and such duty must be paid by the person holding the license.