Corporate tax (selskabsskat)
Corporate tax (selskabsskat) is the tax limited companies such as ApS and A/S pay on their taxable income. The Danish rate is 22 %, and the tax appears in the income statement as tax on profit for the year.
The figures behind the term
Source: companydata.dk, CVR and annual reports, updated 16 October 2026
Corporate tax is calculated on taxable income, which can differ from the accounting profit before tax because of deduction rules, depreciation and losses carried forward. The tax line in the annual report therefore rarely equals exactly 22 % of profit before tax.
How to read tax in the financial statements
In the income statement, tax on profit for the year sits between profit before tax and profit for the year. The line contains both current tax payable and adjustments to deferred tax. A low or negative tax line can stem from losses in earlier years rather than low earnings.
Who pays corporate tax?
Only separate taxable entities pay corporate tax: private and public limited companies, foundations and certain associations. Sole proprietorships and general partnerships are instead taxed through their owners as personal income. Companies pay the tax on account twice a year, in March and November.
Frequently asked questions
What is the corporation tax rate in Denmark?
22 % of taxable income. The rate has been 22 % since 2016.
Why does a company not always pay 22 % of its profit?
Because taxable income is not the same as the accounting result. Tax depreciation, carried-forward losses and non-deductible costs all shift the base.
How is the effective tax rate on this page calculated?
As tax on profit for the year divided by profit before tax, across the annual reports from the last 18 months where the company was profitable.
Related terms
Net result (årets resultat)
The net result (årets resultat) is the bottom line of the financial statements: the company's total profit or loss for the fiscal year after all costs, financial items, and tax have been deducted.
Annual report (årsrapport)
An annual report (årsrapport) is a company's complete official financial reporting for a fiscal year, typically income statement, balance sheet, notes, and management review, filed with the Danish Business Authority and made public.
Private limited company (ApS)
An anpartsselskab (ApS) is a Danish private limited company where the owners are liable only for their contribution. It is Denmark's most common company type and requires share capital of at least DKK 20,000.
Public limited company (A/S)
An aktieselskab (A/S) is a Danish limited company with share capital of at least DKK 400,000 and a requirement for both an executive board and a board of directors (or supervisory board). Only an A/S can be listed on a stock exchange.