The times when savings in the company scheme could only be placed on deposit accounts or bond investments are long gone. However, there are still strict rules on how you, as an auditor, lawyer or another self-employed person, may invest the money you have saved in the company scheme. By examining the possibilities, you can spread your investments and optimize the relationship between return and risk.

The problem with investing its VSO funds in single stocks is that it is considered a withdrawal. Therefore, the entire amount invested is considered personal income and is then taxed. If, on the other hand, you choose to invest the company’s funds through an accumulating department, you can invest in both shares and bonds. Essentially, it should be noted that the longer you can postpone your withdrawals, the more advantageous it is when the top tax limit increases every year (2018: 498.900).

Postpone raising and lowering the tax

According to section 1 (1) of the Companies Tax Act. 2, the funds covered by the company scheme can only be invested in shares when this is done through investment in tax-free investment companies.

It is good for the long-term investor who wants the savings in the company scheme to be invested wholly or partly in shares because it can often be a really good business to examine its opportunities.

If, for example, one chooses not to raise the entire profit in the company, it is possible to save the remaining amount in the company scheme. However, it requires that you pay a preliminary tax on the account, which at the time of writing is 22 percent (2018). By only having to pay a tax on savings on the profit that is not raised at the time of saving, one obtains a liquidity-saving. If it had been said that the whole amount of the savings had to be taxed as personal income, one would have to pay up to 54.7% * in tax on the last earned crown.

An investment in shares and bonds can be a good supplement to, for example, property investment, because investing in equities can help ensure that the overall balance has the optimum return-risk ratio.

Invest VSO funds

The majority of the wealth management associations are subject to the rules in section 19 of the Danish Companies Act on tax-free investment companies, and therefore funds covered by the company scheme can be invested in wealth management’s accumulated (taxed) investment solutions.

Contact one of the wealth management wealth advisers for an informal and non-committal review of the possibilities of investing savings in the business scheme through the accumulating wealth management associations.