Denmark

Denmark - Civil Law (Scandinavian/German)
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Denmark taxes

If you want to do business in Denmark, this article will educate you on the tax laws for a LLC (ApS) which is the most common legal entity in Denmark.

Denmark taxes corporate income accrued offshore in the same way that onshore. The usual tax percentage for income earned abroad, from our research, and this is not personal tax advice, is 22%. However, profits of a permanent establishment and real estate outside Denmark are not taxable. Taxes are reasonable in Denmark because the rate which a LLC (ApS) will pay tax is 22%. This ranks Denmark as 88th overall in terms of corporate tax rate worldwide.

The VAT rate in Denmark is 25.00%, that ranks Denmark as 171st when compared to VAT taxation rate internationally. In terms of other taxation, an employer will contribute DKK 12,722.2 annually to the equivalent of a social security fund and an employee will contribute DKK 1135.8. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 65 hours. Contributing to this is the number of yearly labor tax payments, which is 1 in DK.

Thin capitalization mandates are in effect. This refers to any type of requirements on companies' debt-to-asset ratios. Generally, dividends received by a resident company on subsidiary or group shares are tax exempt. 70% Dividends from unlisted portfolio shares are subject to CIT, dividends from a listed portfolio are fully subject to taxation. A dividend is a distribution of a portion of a company's earnings, passed by by the board, to a class of its shareholders. Dividends can be either cash payments, shares of stock, or other property. Capital Gains are included in CIT taxable income. However, gains derived from subsidiary shares, group shares or unlisted portfolio shares may be exempted. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

Dividend payments to non-residents companies are generally subject to a 27 withholding tax, however 5% may be claimed, resulting an effective tax of 22%. If the recipient holds less than 10% of shares and is resident of a country where Denmark has concluded an exchange of information tax treaty, dividends may be subject to a 15% withholding tax. If the shareholder owns more than 10% of shares, dividends may be exempted of withholding tax provided that recipient is resident of EU or a jurisdiction where Denmark has concluded a tax treaty with. Interests are usually exempt of withholding tax, but a 22% tax may apply on interests paid to foreign related entities in certain situations. Payments on royalties to non-residents are usually subject to a 22% withholding tax, unless rate is reduced under a tax treaty.
There is no known tax on wealth in Denmark. There are inheritance and real property taxes in DK. There are commonly used research and development tax relief in this country.

The above is not tax or legal advice for your individual circumstances. Incorporations.io can refer you to a tax advisor in Denmark who can give you an answer. Click the free consultation button above.

It takes approximately 25 hours to file and prepare documents for a Denmark Civil Law (Scandinavian/German).
The corporate tax is approximately 22% which is 90 in the world.

Owners of a company in Denmark are not allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.

The vat rate in Denmark is 25% which ranks 171 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
122Tax treaties
22%Offshore Tax
22%Corp rate
-Loss carryback years
25Corporate time
25%VAT rate
22%Capital gains
2017AEOI planned

Read this to learn about incorporating a company in
Denmark

We can help you form a company in Denmark. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Denmark, which is required by law.

Denmark Tax Treaties

CountryTypeDate signed
Croatia
DTC 2007-09-14
Philippines
DTC 1995-06-30
Indonesia
DTC 1985-12-28
Romania
DTC 1976-12-13
Liechtenstein
TIEA2010-12-17
Vietnam
DTC 1995-05-31
Tunisia
DTC 1981-02-05
Taiwan
DTC 2005-08-30
Malta
DTC 1998-07-13
Panama
TIEA2012-11-16
Brunei
TIEA2012-06-27
Estonia
DTC 1993-05-04
Vanuatu
TIEA2010-10-13
Austria
DTC 2007-05-25
Guatemala
TIEA2012-05-15
Japan DTC 1968-02-03
Bermuda
TIEA2009-04-16
Bahamas
TIEA2010-03-10
Macao
TIEA2011-04-29
Trinidad and Tobago
DTC 1969-06-20
San Marino
TIEA2010-01-12
Switzerland
DTC 1973-11-23
Curacao
TIEA2009-09-10
Venezuela
DTC 1998-12-03
Liberia
TIEA2010-11-10
Sweden
TIEA1989-12-07
Faroe Islands
TIEA1989-12-07
Kyrgyzstan
DTC 1986-10-21
Sint Maarten
TIEA2009-09-10
Hong Kong
TIEA2014-08-22
Anguilla
TIEA2009-09-02
Armenia
DTC 1986-10-21
Grenada
TIEA2010-05-19
South Africa
DTC 1995-06-21
Greenland
TIEA1989-12-07
Georgia
DTC 2007-10-10
New Zealand
DTC 1980-10-10
Uganda
DTC 2000-10-14
Belgium
DTC 1969-10-16
Germany
DTC 1995-11-22
Uruguay
TIEA2011-12-14
Gibraltar
TIEA2009-09-02
Cayman Islands
TIEA2009-04-01
Antigua and Barbuda
TIEA2009-09-02
Ghana
DTC 2014-03-20
Hungary
DTC 2011-04-27
Russia
DTC 1996-02-08
Jamaica
TIEA2012-12-04
Seychelles
TIEA2011-03-30
Monaco
TIEA2010-06-23
Montenegro
DTC 1981-03-19
Thailand
DTC 1998-02-23
Niue
TIEA2013-10-16
Jersey
TIEA2008-10-28
Portugal
DTC 2000-12-14
Qatar
TIEA2013-09-06
Tanzania
DTC 1976-05-06
Ukraine
DTC 1996-03-05
Slovenia
DTC 2001-05-02
Egypt
DTC 1989-02-09
Kuwait
DTC 2010-06-22
Montserrat
TIEA2010-11-22
Argentina
DTC 1995-12-12
Zambia
DTC 1973-09-13
Israel
DTC 2009-09-09
Poland
DTC 2001-12-06
Kazakhstan
DTC 1993-12-10
Belarus
DTC 1986-10-21
Cook Islands
TIEA2009-12-16
Kenya
DTC 1972-12-13
Lithuania
DTC 1993-10-13
Mauritius
TIEA2011-12-01
Spain
TIEA2009-11-12
China
DTC 2012-06-16
Isle of Man
TIEA2007-10-30
Canada
DTC 1997-09-17
Bahrain
TIEA2011-10-14
Aruba
TIEA2009-09-10
South Korea
DTC 2007-11-11
United Kingdom
DTC 1980-11-11
Costa Rica
TIEA2011-06-29
Bangladesh
DTC 1996-07-16
Samoa
TIEA2009-12-16
Netherlands
DTC 1996-07-01
Italy
DTC 1999-05-05
Guernsey
TIEA2008-10-28
Turks and Caicos Islands
TIEA2009-09-07
Singapore
DTC 2000-07-03
Chile
DTC 2002-09-20
Pakistan
DTC 1987-10-22
Brazil
DTC 1974-08-27
India
DTC 1989-03-08
Saint Kitts and Nevis
TIEA2009-09-02
Saint Lucia
TIEA2009-10-12
Andorra
TIEA2010-02-24
Greece
DTC 1989-05-18
Saint Vincent and the Grenadines
TIEA2009-09-01
Luxembourg
DTC 1980-11-17
Belize
TIEA2010-09-15
Malaysia
DTC 1970-12-04
Cyprus
DTC 2010-10-11
Marshall Islands
TIEA2010-09-28
Botswana
TIEA2013-02-20
Serbia
DTC 2009-05-15
Finland
TIEA1989-12-07
Morocco
DTC 1984-05-08
Azerbaijan
TIEA1988-01-25
Mexico
DTC 1997-06-11
Sri Lanka
DTC 1981-12-22
Bulgaria
DTC 1988-12-02
Norway
TIEA1989-12-07
Barbados
TIEA2011-11-03
Turkey
DTC 1991-05-30
Dominica
TIEA2010-05-19
Slovakia
DTC 1982-05-05
Australia
DTC 1981-04-01
Latvia
DTC 1993-12-10
Iceland
TIEA1989-12-07
Ireland
DTC 1993-03-26
Macedonia
DTC 2000-03-20
Czech Republic
DTC 2011-08-25
United States
DTC 1999-08-19

Country Info

National Flag of
Kongeriget Danmark (dan)
Currency
DKK
Area Code
+45
Capital
Copenhagen
Region
Northern Europe
Native Languages
Danish