Running a business in Denmark involves several tax and accounting obligations. To comply with the law, companies must keep track of their tax duties, VAT reporting, and accounting system requirements. Failure to follow these rules may result in the Danish Business Authority closing the company or declaring it bankrupt. It can also make it more difficult to obtain a business account in the future.

This guide provides an overview of the key tax rules in 2025, including how corporate tax is calculated and paid.

1. Tax and VAT for businesses in 2025

VAT Registration and Reporting

• Businesses with an annual turnover exceeding DKK 50,000 must register for VAT with the Danish Business Authority.
• VAT is reported and paid via TastSelv Erhverv on the Danish Tax Agency’s website.
• Reporting deadlines depend on the company’s turnover:
  • Quarterly, if turnover is below DKK 5 million.
  • Monthly, if turnover exceeds DKK 5 million.

Income Tax and Corporate Tax

• The corporate tax rate in Denmark is 22% of taxable profit.
• All companies (ApS, A/S) must submit their annual financial statements to the Danish Business Authority and file a tax return with the Danish Tax Agency.
• Self-employed individuals (sole proprietorships) are taxed under personal income tax rules and pay B-tax.

2. Accounting requirements and bookkeeping

Bookkeeping System Requirements in 2025

• From 2025, all businesses must use a digital accounting system approved by the Danish Business Authority.
• The system must be able to:
  • Automatically report VAT and taxes to the Danish Tax Agency.
  • Store accounting data for at least five years.
  • Comply with EU regulations for electronic invoicing (e-invoicing).

Some of the most commonly used accounting systems in Denmark are:

• Dinero
• e-conomic
• Billy

A key factor for businesses is maintaining accurate financial records. It is essential to continuously record transactions and track VAT and other expenses. Choosing a business account that supports integration with accounting systems can greatly simplify bookkeeping. This enables automatic synchronization and bookkeeping through account linking, which not only helps with financial control but also saves time for accountants and bookkeepers.

Audit requirements

Small businesses can avoid mandatory audits if they meet at least two of the following criteria:

• Turnover below DKK 8 million.
• Total assets below DKK 4 million.
• A maximum of 12 employees.

Larger businesses must have their financial statements audited by a certified public accountant.

3. How corporate tax is calculated and paid

The corporate tax rate is 22% of taxable profit. The calculation is as follows:

(Turnover - operating expenses - depreciation - interest expenses) × 22% = corporate tax

Example:

• Turnover: DKK 5,000,000
• Operating expenses: DKK 2,000,000
• Depreciation: DKK 300,000
• Interest expenses: DKK 50,000
• Taxable profit: DKK 2,650,000
• Corporate tax (22%): DKK 583,000

Payment of Corporate Tax

• Tax payments are made via TastSelv Erhverv.
• Companies pay preliminary tax in March and November.
• If actual profit exceeds the expected amount, an additional tax payment is required at the end of the year.

4. Consequences of Non-Compliance

Incorrect or missing tax reporting can have serious consequences:

• Fines and interest charges for late or incorrect reporting.
• Business closure or bankruptcy if regulations are not followed.
• Difficulty obtaining a business account, as banks assess credit risk based on past business history.

To avoid these issues, it is recommended to:

• Use an approved accounting system for automatic bookkeeping.
• Report taxes and VAT on time via TastSelv Erhverv or your banking platform.
• Pay close attention to the tax account and emails from SKAT.dk, which are sent to the company’s digital mailbox (E-boks).
• Consult an accountant if there is any uncertainty about tax calculations.

In 2025, it is more important than ever for businesses to stay on top of their tax obligations. Correct VAT and tax reporting, the use of approved accounting systems, and a fundamental understanding of corporate tax are essential for running a healthy and legally compliant business.

For companies looking for a complete financial solution, Zento offers access to a local account, integration with accounting systems, and an easy way to manage tax payments.

Apply for a business account via Zento today and simplify your tax management!