Denmark

Overview

Last reviewed - 03 August 2020

Denmark, a Scandinavian country located in Northern Europe, is bordered primarily by the Baltic Sea and the North Sea. It is divided into five main regions, with Copenhagen as its capital. The official language of Denmark is Danish, and the currency is the Danish krone (DKK).

Once the home of Vikings and later a major Northern European power, Denmark is a modern, prosperous nation that is participating in the general political and economic integration of Europe. It joined the North Atlantic Treaty Organization (NATO) in 1949 and signed the convention founding the Organisation for Economic Co-operation and Development (OECD) in 1960. Since 1973, Denmark has also been a member of the European Union (EU).

Denmark has a thoroughly modern market economy, which features a high-tech agricultural sector; a state-of-the-art industry with world-leading firms in pharmaceuticals, maritime shipping, and renewable energy; and a dependence on foreign trade. The Danish economy is also characterised by extensive government welfare measures, an equitable distribution of income, and comfortable living standards. Denmark is a net exporter of food and energy and enjoys a comfortable balance of payments surplus. The country has opted out of certain elements of the EU's Maastricht Treaty and issues concerning certain justice and home affairs. Despite meeting the criteria to join the European Economic and Monetary Union (EMU), so far Denmark has decided not to join, although the krone is pegged to the euro.

PwC Denmark is one of the largest firms in the country within its three main areas: audit, tax, and consulting services. We serve a significant proportion of Denmark's largest companies, public and private institutions, and have a soundly based portfolio of clients in most industries. Through product development and national, as well as international, experience, our professionals have developed broad expertise and are able to provide unique services. Tax planning and tax reporting have become more extensive and opaque for businesses. At the same time, it also means more for the company's finances and reputation. Frequent changes in tax laws place both Danish and foreign companies under great pressure. PwC's approximately 280 Danish tax specialists offer solution-oriented tax advice based on specific tax challenges and create value to our clients' bottom line. Clients receive personalised service with local expertise in a global network.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

22

Corporate income tax (CIT) due dates
CIT return due date

In general, six months after the end of the accounting year.

CIT final payment due date

20 November in the year following the income year.

CIT estimated payment due dates

Two equal instalments due on 20 March and 20 November. It is further possible to make an additional tax payment by 1 February in the year following the income year.

Personal income tax (PIT) rates
Headline PIT rate (%)

Up to 56% (i.e. 52% + 8% labour market tax)

Personal income tax (PIT) due dates
PIT return due date

The tax return must be filed by 1 May or no later than 1 July in the year following the relevant income year.

PIT final payment due date

Three instalments with due dates on 1 August, 1 September, and 1 October.

PIT estimated payment due dates

NP

Value-added tax (VAT) rates
Standard VAT rate (%)

25

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 27 / 22 / 22;

Non-resident: 27 / 22 / 22

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate.

Individual capital gains tax rate (%)

Capital gains are subject to the normal PIT rate.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

15

Gift tax rate (%)

15

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.