Given Denmark’s well-known tax complexity and comprehensive fiscal environment, this article offers a focused look at the corporate tax regime for companies operating in Denmark in 2025. Here you’ll find core information on headline tax rates, sector-specific surtaxes, and important distinctions relevant for both domestic and international businesses.
Corporate Income Tax Rate in Denmark (2025)
Denmark applies a flat-rate corporate income tax for most companies. The standard corporate income tax rate assessed on taxable corporate profits is:
| Tax Type | Assessment Basis | Rate (%) | Currency (DKK) |
|---|---|---|---|
| Corporate Income Tax | Corporate Profits | 22% | DKK |
This flat rate (22%) means profits are taxed uniformly, regardless of their size or company structure, except where special sector rules apply.
Sector-Specific Surtaxes and Special Rules
While most companies are taxed at the standard 22%, Denmark applies higher effective rates or additional taxes in certain sectors. The following table summarizes these key surtaxes for 2025:
| Sector/Activity | Surtax Rate (%) | Combined CIT Rate (%) | Applicable Conditions |
|---|---|---|---|
| Financial Companies | 3% | 25% | Surtax applies to financial sector companies |
| Oil and Gas Upstream Activities | 25% | 25% | Standard 22% CIT replaced by 25% CIT for upstream oil/gas |
| Hydrocarbon Tax (Oil & Gas on Danish Continental Shelf) | 52% | 64% (with underlying oil/gas CIT) | Applies on top of 25% CIT for extractive activities |
| Dividends to Entities in EU Blacklisted Jurisdictions | 4% | 44% (final gross tax on such dividends) | Dividends paid to persons/companies in tax haven countries |
These heightened rates reflect Denmark’s regime for specific high-regulation industries and anti-avoidance measures. Especially for upstream oil and gas operations or financial sector businesses, obtaining expert, up-to-date guidance on sector-specific rates is essential.
Additional Considerations
- No published brackets: Denmark’s corporate income tax regime operates on a flat rate. There are no tax brackets or progressive rates for standard corporate profit taxation.
- No official holding period requirements: The data available does not specify any minimum or maximum holding periods influencing corporate tax liability or treatment of gains for corporations.
- Currency of taxation: All corporate tax calculations are conducted in Danish Krone (DKK), with reporting and payment based on denominated DKK accounts as required by local regulation.
Key Figures at a Glance
| Parameter | Value | Currency/Unit |
|---|---|---|
| Standard Corporate Tax Rate | 22% | DKK |
| Special Surtax – Financial Companies | 3% | DKK (Added to standard) |
| Special Corporate Tax – Oil/Gas Upstream | 25% | DKK (Replaces standard) |
| Hydrocarbon Profit Tax (on top of oil/gas) | 52% | DKK (Combined rate 64%) |
| Final Gross Tax on Blacklisted Dividend Payments | 44% | DKK (Final) |
Actionable Pro Tips for Navigating Danish Corporate Tax
- Review your corporate structure annually to determine if any activities expose your business to Denmark’s sector-specific surtaxes or anti-avoidance dividend rules.
- For multinational groups, pay close attention to the jurisdiction of dividend recipients—payments to EU-blacklisted jurisdictions face significant final gross taxes, currently at 44%.
- If involved in oil or gas extraction, calculate your effective tax burden using both the primary sector CIT (25%) and the hydrocarbon surtax (52%), as the combined liability can exceed standard corporate tax rates by a substantial margin.
- Consult official Danish tax authority guidance for sector-specific updates, as rates and assessment bases can change with new fiscal policies. Reliable starting points are main government sites like www.sktst.dk.
Summary
Denmark’s corporate tax system in 2025 features a flat 22% rate for most companies, with meaningful surcharges targeting financial, oil, and gas sectors. Sector-specific and anti-avoidance rules mean headline rates may not tell the whole story. Understanding how these surtaxes impact your unique circumstances is crucial to effective business planning and compliance in the Danish tax landscape.