# What is Selskabsskat (Corporate Income Tax)?

Country: Denmark

Danish corporate income tax at a flat 22% rate on taxable profits of resident companies (ApS, A/S). No progressive thresholds. Paid via TastSelv Erhverv to Skat.dk. Applies to worldwide income of Danish-resident entities.

## Current rate (Indkomstår 2025)

22% flat rate on taxable profits

## Example

An ApS with DKK 1,000,000 taxable profit pays DKK 220,000 selskabsskat. Two advance instalments (acontoskat) are due during the year; the balance is settled when the final return is filed by 30 June.

## How Selskabsskat (Corporate Income Tax) works in Denmark

Selskabsskat is levied at 22% on a Danish company's taxable profit, which is accounting profit adjusted for non-deductible items, depreciation differences, and any group relief. The flat rate has been stable since 2016 and applies equally to small sole-person ApS entities and large multinational subsidiaries.\n\nDanmark uses a classical system: the company pays 22% on profits, then distributes net-of-tax dividends to shareholders who pay a further 27% (below DKK 61,000 threshold) or 42% on dividend income. This double-taxation creates a strong incentive for owner-managed businesses to retain profits inside a holding company structure and extract via tax-exempt inter-company dividends.\n\nFiling: The selskabsskat return is filed electronically via TastSelv Erhverv. For calendar-year companies the deadline is 30 June (six months after year-end). Companies with non-calendar fiscal years have until the end of the sixth month after their year-end, with a maximum extension to 30 September.\n\nAdvance payments (acontoskat): Companies pay 50% of expected tax on 20 March and 20 November during the income year. Underpayment after the November instalment triggers interest charges (procenttillæg). Overpayments are refunded with a small interest allowance. Accurate profit forecasting reduces unnecessary cash outflows on the March instalment.\n\nGroup companies can achieve a form of group relief via the Danish sambeskatning (joint taxation) rules, which require all Danish group companies (and certain foreign subsidiaries) to be included in a joint return. Losses in one entity offset profits in another, reducing overall group tax liability. International joint taxation is elective and locks in all foreign subsidiaries for ten years.\n\nTransfer pricing: Related-party transactions must be at arm's length. Danish companies above DKK 5m of controlled transactions must maintain contemporaneous TP documentation and file a TP declaration with the corporate return.

Source: https://skat.dk/skat.aspx?oid=2234911

## Related terms

- [Holdingselskab (Holding Company)](https://accounts-os.com/dk/glossary/holdingselskab-dk)
- [ApS (Anpartsselskab) / A/S (Aktieselskab)](https://accounts-os.com/dk/glossary/aktieselskab-aps-dk)