Selskabsskatten

Selskabsskatten is Denmark's corporate income tax, levied on the profits of companies. It is governed by the Danish Corporate Tax Act (selskabsskatteloven) and administered by the Danish Tax Agency (Skatteforvaltningen).

Resident companies are taxed on worldwide income, while non-resident companies are taxed on Danish-source income, including profits from a Danish permanent establishment. The system focuses on corporate entities that carry out business activities in Denmark and generate taxable profits within the Danish tax framework.

Taxable income is calculated under Danish tax rules, starting from accounting profit and adjusted for tax purposes through depreciation, deductions, and other adjustments. The standard corporate tax rate is 22 percent on taxable profits.

Tax deductions and reliefs include depreciation of assets, financing costs under applicable limits, and certain incentives. Losses from one year may be carried forward to offset future profits; group relief allows losses within a Danish corporate group to be offset among group companies under specific conditions.

Tax returns are filed annually with the Skatteforvaltningen, and tax is paid through advance payments during the year with a final settlement after the accounting year ends. Denmark maintains transfer pricing rules and a network of double taxation treaties to prevent international double taxation, along with compliance rules aligned with EU anti-avoidance standards.