Skatter i Danmark

Taxes in Denmark

Companies in Denmark and VAT

VAT is reported monthly, quarterly or per year. It depends, among other things, on the amount of sales you have. If you start a new business and / or if you trade between 5-50 million DKK, you will report the VAT per quarter for the first 18 months. After that, the tax office can decide that you will have to report the VAT every six months instead. Any change depends on your sales and if you have reported and paid in advance the previous reporting periods.

If you sell more than DKK 50 million, you should report VAT every month. You can also apply for monthly reporting even if your turnover is lower. At monthly tax returns, the VAT is reported and paid the month after the accounting period. The dates vary slightly but usually the declaration will be made around the 25th.

Report sales to another EU country

In trade with other EU countries, sales are reported to the tax office on a monthly basis. If you have no sales to another EU country, you do not need to submit a declaration. The accounting date is usually round the 25th month after the month of sale. It is also possible to apply for reporting quarterly EU sales.
You can pay the VAT from your NetsKonto but you can also pay from a foreign bank account. When paying from a foreign account, you must pay to the Danish Tax Agency IBAN account.

Tax rates Companies in Denmark

Corporate tax25%
Social fees1%
Dividend Tax0% for the owner with at least 10% and resident in another EU country
Capital Gains Tax0% for the owner with at least 10% and resident in another EU country.
VAT25%

Social fees and payroll tax

In Denmark, the largest part is the payroll tax and health allowance (= 27%), there is also so-called labor market contribution (= 8%), which is deducted from gross salary before calculating the 27% payroll tax. In total, the employer deducts approximately 35% from the employee’s gross salary. The employer’s cost is only about 1% on gross salary.