Corporation tax

What is corporation tax

Corporation tax is a tax paid when a company has a profit. Corporation tax is corporate tax which is paid to the state, just as personal tax is private tax.

Corporation tax in 2020

 In 2019, corporation tax in Denmark is 22% of the company's taxable profit.

Corporation tax 2020 2019
A / S, ApS and consumer associations, accumulating investment associations, funds, associations, institutions, etc. 22% 22%
Cooperatives 14.3% 14.3%

As a business owner or manager, it is important that you are well at home in the Danish tax rules, not least when it comes to corporation tax. In Denmark, all companies are obliged to pay tax on their profits - and if you are unsure about the rules, it can quickly become much more expensive than necessary.

Incidentally, it is not only the classic Danish company that is taxable. The corporation tax also includes, for example, funds, associations, capital companies or foreign companies that are registered in Denmark. On the whole, corporation tax is a complicated area of ​​rules that is constantly changing. Therefore, you can benefit greatly from qualified advice.

At RSM Denmark, we have all the necessary expertise and experience you and your company need. We can help you both understand and plan your corporation tax so that you secure the company's finances in the best possible way. Often, there may also be unused deductions or depreciation options that you have not been aware of.

Which types of companies must pay corporation tax 

The following types of companies are subject to corporation tax: A/S (public limited companies), ApS (private limited companies) and consumer associations, accumulating investment associations, funds, associations, institutions, etc.

Cooperatives are subject to a tax, which in 2020 is 14.3%

Sole proprietorships and I/S (partnerships) are typically taxed as personal income, you can read more about personal income in our section on Personal Income Tax .

Furthermore, you can read about the choice of corporate taxation which is important for you who run sole proprietorships and I/S (partnerships). Here you can choose between 3 models which are described in our section Corporate taxation

Always up to date in VAT, taxes and duties

It is important to us that all our auditors deliver the quality we are known for.

We therefore ensure that all employees and partners are up-to-date with changes in the legislation within VAT, tax and duties. This is done through constant training, course activities and participation in subject-relevant seminars and go-home meetings. In addition, we give very high priority to knowledge sharing between our offices around the country and our tax experts at Revitax.