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Operations
Tax, accounting, and compliance for running your Danish startup.
Tax & SKAT
Corporate Tax Rate
- Rate: 22% on company profits (verify current rate at SKAT)
- Payment: Paid in two installments (March and November)
- Returns: Annual tax return due 6 months after fiscal year end
SKAT Registration
SKAT is Denmark's tax authority. Registration is automatic when you register your company with Virk.dk.
- SE number: Central tax number (automatic)
- TastSelv Erhverv: Online portal for tax filings - tastselv.skat.dk
- Digital post: All official tax correspondence is digital via e-Boks
Tax-Deductible Expenses
Common startup expenses that are tax-deductible:
- Office rent and utilities
- Software subscriptions and cloud services
- Salaries and contractor fees
- Professional services (legal, accounting)
- Marketing and advertising
- Business travel (with documentation)
- Office equipment and hardware
Important SKAT Links
Accounting
Accounting Requirements
- Bookkeeping system: Required by law (digital or physical)
- Document retention: 5 years for all financial documents
- Annual report: Required within 5 months of fiscal year end
- Audit requirement: Only if 2 of 3 criteria met:
- Revenue > 9M DKK
- Assets > 4.5M DKK
- Employees > 12 full-time
Accounting Software
Popular options for Danish startups:
| Software |
Best For |
Price Range |
| Dinero |
Most startups, Danish-focused |
129-549 DKK/month |
| Billy |
Freelancers, simple needs |
69-249 DKK/month |
| e-conomic |
Growing companies |
199-899 DKK/month |
| Xero |
International operations |
€13-45/month |
Hiring an Accountant
When to consider professional help:
- Day 1: If you're unfamiliar with Danish tax rules
- When raising capital: Clean books help with due diligence
- When hiring: Payroll adds complexity
- Year-end: Most startups hire accountant for annual report
See Service Providers for accountant recommendations.
VAT (Moms)
VAT Basics
- Standard rate: 25% on most goods and services
- Registration threshold: 50,000 DKK annual turnover
- Voluntary registration: Can register below threshold
- Filing frequency: Quarterly (or monthly if turnover > 50M DKK/year)
When to Register
| Situation |
VAT Registration Required? |
| Selling physical products in DK |
Yes (if > 50k DKK/year) |
| Selling SaaS to DK consumers (B2C) |
Yes (from first kroner) |
| Selling SaaS to EU businesses (B2B) |
No (reverse charge) |
| Selling SaaS outside EU |
No |
| Consulting services |
Yes (if > 50k DKK/year) |
VAT Returns
- Portal: TastSelv Erhverv on SKAT
- Deadlines: 1 month and 10 days after quarter end
- Input VAT: Deduct VAT paid on business expenses
- Output VAT: VAT collected from customers
EU VAT Rules
- B2B sales: Customer pays VAT in their country (provide their VAT number)
- B2C sales: Complex rules, may need to register in customer countries
- OSS scheme: One-Stop-Shop for simplified EU B2C VAT reporting
Payroll & A-skat
A-skat (Withholding Tax)
Employers must withhold income tax from employee salaries.
- A-skat rate: Based on employee's tax card (skattekort)
- Payment: Monthly to SKAT
- Reporting: Annual eIndkomst report
Labor Market Contributions
| Contribution |
Rate |
Paid By |
| AM-bidrag (labor market tax) |
8% |
Deducted from salary |
| ATP (pension) |
~1,200 DKK/year |
Split employer/employee |
| AES (employer social security) |
Varies |
Employer |
Payroll Services
Most startups outsource payroll due to complexity:
- Salary.dk: Popular for small companies
- Zenegy: Modern, startup-friendly
- Lønservice Danmark: Traditional option
- Your accountant: Many offer payroll as add-on
Annual Compliance
Annual Deadlines
| Requirement |
Deadline |
Submitted To |
| Annual report (årsrapport) |
5 months after fiscal year end |
Erhvervsstyrelsen (via Virk.dk) |
| Tax return (selvangivelse) |
6 months after fiscal year end |
SKAT |
| eIndkomst (payroll report) |
Monthly + annual reconciliation |
SKAT |
| CVR data update |
Within 2 weeks of changes |
CVR register (via Virk.dk) |
Annual Report Requirements
All ApS companies (and legacy IVS companies) must file an annual report including:
- Balance sheet
- Income statement
- Management commentary
- Notes to financial statements
- Signatures from management and board
Penalties for Non-Compliance
- Late annual report: Fines from 1,500 DKK, potential forced dissolution
- Late tax return: Interest charges + penalties
- Late VAT filing: Fines from 800 DKK per late return
Important: Set up calendar reminders for all deadlines. Many startups hire an accountant to manage annual compliance.