Companies, income

Private and public companies in Denmark (ApS and A/S) are liable to corporation tax of their income in Denmark. Income from foreign permanent establishments or properties are, as a rule, exempted unless international joint taxation is opted.

In order to avoid double taxation related to foreign income Denmark has entered tax treaties with app. 150 countries. The most common instrument for avoidance of double taxation is credit for foreign paid tax.

Foreign companies are also liable to corporation tax in Denmark if the effective seat of management is in Denmark.
The tax rate is flat 22 % on all taxable income and gains.

Taxable losses can be carried forward without timing expiration. Carry backwards is not possible.