Corporate income tax in Denmark: what your company pays in 2026

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You run, or plan to run, a Danish ApS or A/S and want to know what it pays, when, and what happens when profit reaches you. The 22% headline is simple. After reading this, you will also know the loss cap, the interest limits, the payment calendar and the cost of taking money out.

Denmark corporate income tax in 2026: the key figures

What changed for 2026

• The loss-offset base amount is indexed to DKK 21,830,700 for 2026 and DKK 22,466,700 for 2027, per the Ministry of Taxation's rate table.
• The standard rate for the interest asset test is 4.2% for 2026, set by Skattestyrelsen's annual notice (§ 11 B(2) SEL).
• 2026 is the last year for the 108% depreciation base on new green operating assets, except cars, ships and software (§ 5 E of the Depreciation Act).
• The share income band for owners rises to DKK 79,400 in 2026, from DKK 67,500 in 2025.

Is this guide for you?

Read on if you…

• own a Danish ApS or A/S, or are about to set one up;
• run a foreign company and live, or plan to live, in Denmark;
• want to plan salary, dividends and a holding company around 2026 rates.

Probably not your case if you…

• are a sole trader without a company; start with legal forms of business in Denmark;
• only hold listed shares as a private investor; see capital gains tax in Denmark.

Who pays corporate tax in Denmark?

Registered limited companies, the aktieselskab (A/S) and anpartsselskab (ApS), are fully taxable under § 1(1) SEL. Their start-up capital ranges from DKK 20,000 to DKK 400,000 depending on the type, as Skattestyrelsen explains.

Place of management: the founder's trap

Under § 1(6) SEL, a company is Danish resident if it is registered in Denmark or has its place of management there. Place of management means where the key strategic decisions are actually taken.

Here's the catch. If you move to Copenhagen and keep running your Estonian or UK company from your kitchen table, Denmark can treat that company as Danish. It then pays 22% on its profit here, subject to the tie-breaker in the relevant tax treaty. Read tax residency in Denmark alongside this guide before you move.

Foreign companies with a branch

A foreign company that is not managed from Denmark pays Danish tax only on profit linked to a Danish permanent establishment. That is a fixed place of business, such as an office or branch, through which it operates here.

How is taxable profit calculated?

You start from the accounting result and apply the tax rules. Running costs that earn, secure or maintain income are deductible. Tax depreciation replaces accounting depreciation: equipment goes into a pool written down by up to 25% a year. Our guide to business expenses in Denmark covers the detail.

Losses: unlimited, but capped each year

Under § 12 SEL, old losses offset profit in full up to a base amount. The law sets it at DKK 15.9 million at 2010 level, indexed to DKK 21,830,700 for 2026. Above that, only 60% of the remaining profit can absorb losses.

In practice, this cap only bites when profit passes about DKK 21.8 million. Losses cannot be carried back to earlier years.

Interest: three tests, mostly for larger groups

1. Thin capitalisation (§ 11 SEL): interest on controlled debt is cut when debt exceeds equity by more than 4:1, but only if controlled debt tops DKK 10 million.
2. Asset test (§ 11 B SEL): net financing costs above DKK 21.3 million are limited to a standard rate on certain assets.
3. EBITDA test (§ 11 C SEL): excess borrowing costs are capped at 30% of taxable EBITDA, with a guaranteed DKK 22,313,400 a year.

Good news: a typical founder company with modest bank or shareholder loans stays below all three thresholds.

How are groups, holding companies and dividends taxed?

Joint taxation

Danish companies in the same group are taxed jointly by law. The top company acts as the management company and pays the group's tax on account and final tax. Opting into international joint taxation with foreign group members binds the parent for ten years (§ 31 A(3) SEL).

Dividends and gains inside a group

A Danish company receives dividends tax-free on subsidiary shares (at least 10% ownership) and group shares. Dividends on unlisted portfolio shares under 10% are exempt too (§ 13(1) SEL). Gains on these categories are also exempt under § 8 ABL (Act on Taxation of Gains on Shares). Dividends and gains on listed portfolio shares, though, are taxed at 22%.

That is why founders often place a holding company (holdingselskab) above the operating ApS. Profit can move up and be reinvested without personal tax.

Paying dividends out

The company must withhold dividend tax and pay it by the 10th of the month after the distribution was approved (the 17th in January). Skattestyrelsen's dividend page lists the rates: 27% to individuals and 0% to Danish parent or group companies. Other Danish companies generally suffer 22%. Foreign companies resident or registered in a jurisdiction listed under § 5 H(2) LL face 44%. Individuals there face 44% if they hold principal, subsidiary or group shares.

Foreign parent companies may get lower withholding under the EU Parent-Subsidiary Directive or a tax treaty. The conditions depend on the holding and the recipient's country.

What you pay personally

Dividends are share income. For 2026, share income is taxed at 27% up to DKK 79,400 and 42% above. Married couples living together share a doubled band of DKK 158,800.

Combined with 22% corporate tax, a dividend inside the 27% band costs 43.06% in total. Above the band, the combined rate is 54.76%.

When do you file and pay?

1. Pay ordinary tax on account. Skattestyrelsen sets it at 50% of the company's average corporation tax over the past three years. It is collected in two equal instalments on 20 March and 20 November, per its tax on account guidance.
2. Top up voluntarily if profit grows. You can add to either instalment. A third optional payment for 2026 is due by 1 February 2027.
3. File the return in E-tax for businesses (TastSelv Erhverv). The deadline is usually six months after year-end, so 30 June 2027 for a calendar 2026.
4. Settle the balance. Residual tax plus a surcharge can be paid between 1 and 20 November after the income year.

Allowances and surcharges for voluntary payments are published each December. For 2025, the residual tax surcharge was 6.6%. Repeated or deliberate under-reporting falls under tax fraud regulations of Denmark.

Pillar Two: does the 15% minimum tax apply to you?

Denmark's minimumsbeskatningsloven (Minimum Taxation Act) applies the global minimum tax of 15%. Under § 1, it covers groups with turnover of at least EUR 750 million in 2 of the 4 prior years. Large purely Danish groups are included. Under § 71, it applies to fiscal years starting on or after 31 December 2023, with one chapter applying a year later.

For a founder-owned ApS, this is not your concern. With 22% as the standard rate, Denmark's headline rate already sits above the floor.

Common mistakes (and what they cost)

• Running a foreign company from your Danish home → it becomes Danish resident under § 1(6) SEL and owes 22% on its profit here.
• Filing the corporate return late → DKK 400 per day, up to DKK 10,000, plus an estimated assessment based on earlier returns.
• Ignoring a profit jump until November → residual tax carries a surcharge (6.6% for 2025) instead of the cheaper voluntary rates.
• Keeping listed shares in your holding company → those dividends and gains are taxed at 22%, unlike subsidiary shares.
• Paying dividends to a foreign company in a jurisdiction listed under § 5 H(2) LL → withholding jumps to 44%.

Frequently asked questions

What is the corporate tax rate in Denmark in 2026?

The standard rate is 22% of taxable income under § 17(1) of the Corporation Tax Act. It applies to an ApS, an A/S and Danish branches of foreign companies. Financial companies, such as banks and insurers, pay 26%. Hydrocarbon income carries a 3-point supplement on top of the 22%. Large groups also fall under the 15% global minimum tax rules.

When is the Danish corporate tax return due?

Usually six months after the end of the financial year, so 30 June 2027 for a 2026 calendar year. You file in E-tax for businesses. Tax on account is paid on 20 March and 20 November, with an optional third payment by 1 February 2027. Late filing costs DKK 400 per day, capped at DKK 10,000.

Are dividends from a Danish company taxed twice?

In effect, yes. The company pays 22% on its profit. You then pay 27% on dividends up to DKK 79,400 in 2026 and 42% above. The combined rate is 43.06% inside the lower band and 54.76% above it. Dividends to a Danish parent holding subsidiary or group shares are tax-free.

Can a Danish company carry forward losses?

Yes, with no time limit. In 2026, losses offset profit in full up to DKK 21,830,700. Above that, only 60% of the remaining profit can be offset, so some tax is paid even with large losses. Losses cannot be carried back. Small and mid-sized companies rarely hit the cap.

Does a foreign company pay Danish corporate tax?

Yes, in two cases. If its place of management is in Denmark, it is Danish resident and taxed on its profit like a local company. If it only has a permanent establishment here, such as an office, it pays 22% on the profit linked to it. A tax treaty can settle dual residence.

Is a holding company worth it in Denmark?

Often, if you reinvest. Dividends and gains on subsidiary and group shares flow to a Danish holding company tax-free. You then decide when to take money out personally. It means a second set of accounts and filings, so it pays off mainly with meaningful profit or a planned sale.

Related guides

• Legal forms of business in Denmark: ApS, A/S and sole trader compared
• Deductible business expenses in Denmark
• Tax residency rules in Denmark
• Denmark tax landscape overview
• Corporate income tax in Malta
• Corporate income tax in Austria
• All country tax guides

Sources

• Introduction to companies and foundations – Skattestyrelsen
• Paying tax on account and corporation tax – Skattestyrelsen
• Tax return for companies and foundations – Skattestyrelsen
• Declaring and paying dividends and dividend tax – Skattestyrelsen
• Buying and selling shares and securities – Skattestyrelsen
• Rates and thresholds in the Corporation Tax Act 2026–2027 – Ministry of Taxation and Economic Growth
• Rates and thresholds in the Depreciation Act 2026–2027 – Ministry of Taxation and Economic Growth
• Minimumsbeskatningsloven (Act no. 1535 of 12/12/2023) – Retsinformation

This guide is general information, not personalised tax advice. See how we research and review.