Resident companies, which are Danish registered limited liability companies or companies whose management are based in Denmark, are generally subject to tax on their worldwide income, but income and expenditure relating to permanent establishments and fixed property located abroad do not generally fall within the scope of taxation. Other companies are generally taxed on their Danish source income. The corporate tax rate for almost all companies is 22% as of 2018, with different taxation schemes specifically for hydrocarbon companies and a tonnage tax scheme.

A Danish company can choose global joint taxation, which generally applies to all foreign entities (foreign group companies and branches) in which the Danish company has a controlling influence.

The tax year ends on December 31st, companies can choose a different accounting year, and tax returns are generally due for filing within six months after the accounting year end. Companies with accounting years ending between February 1st and March 31st must file by August 1st. Corporate income tax is generally payable on account in two installments during the tax year by March 20th and November 20th, with each installment consisting of one half of the average tax liability over the preceding three years. A final balancing payment is payable by November 20th of the following year.

Paying Tax:

• TastSelv (E-Tax) is SKAT’s online self service system where you can manage your tax affairs—access it here
• Official SKAT tax calendar with relevant deadlines—access it here

Sources

• Baker Tilly International: Doing Business in Denmark
• Deloitte: International Tax Denmark Highlights 2018
• PwC: Denmark-Corporate Tax Administration
• SKAT: Guide to e-Tax

• SKAT: Tax Calendar

• Baker Tilly International: Doing Business in Denmark
• Deloitte: International Tax Denmark Highlights 2018
• PwC: Denmark-Corporate Tax Administration
• SKAT: Guide to e-Tax
• SKAT: Tax Calendar