🇩🇰 Tax Overview — Denmark

Private Limited Company (ApS)

An ApS pays corporate income tax (selskabsskat) at a flat rate of 22% on taxable profits. Denmark applies a participation exemption on dividends and capital gains from qualifying subsidiaries (minimum 10% shareholding). Losses can be carried forward indefinitely, though utilisation is limited to DKK 8.9 million plus 60% of taxable income exceeding that threshold. Denmark has interest deduction limitation rules including an EBITDA rule (net financing costs are deductible up to 30% of taxable EBITDA) and thin capitalisation rules (debt-to-equity ratio of 4:1). VAT (moms) is charged at a flat 25% rate — Denmark does not apply reduced VAT rates. Withholding tax on dividends to non-resident shareholders is 27%, reduced under double tax treaties (typically 0–15%). Within the EU, dividends to qualifying parent companies are exempt under the Parent-Subsidiary Directive.