Denmark

In Denmark, several types of taxes play a crucial role in the fiscal system. Corporate Income Tax (CIT) in Denmark stands at a rate of 22%, with tax returns generally due six months after the accounting year ends. Final payments are required by 20 November of the year following the income year. Companies also need to make estimated payments in two equal instalments by 20 March and 20 November, with an option to make an additional tax payment by 1 February in the subsequent year.

For Personal Income Tax (PIT), the headline rate can go up to approximately 57% in 2026, or 60.5% including the labor market contribution (AM-bidrag). PIT returns are due by 1 May, or no later than 1 July, in the year after the relevant income year. Payments are split into three instalments, due on 1 August, 1 September, and 1 October.

Denmark imposes a Value-Added Tax (VAT) at a general rate of 25%. While there are various exemptions for certain services such as healthcare, financial services, and insurance, most goods and services are subject to VAT. The VAT system is highly regulated, with specific provisions for intra-community transactions within the EU, as well as rules for imports and exports.

Property taxes in Denmark have been recently revised, particularly for the 2022 assessment year onwards. Non-residential property owners must pay land tax annually, with rates ranging from 0.31% to 1.77% of the land’s value. Municipalities may also impose additional coverage charges of up to 1.8% for certain non-residential properties. These new property tax regulations will likely become final by 2025 or 2026, once the assessments are completed.

Inheritance and gift taxes in Denmark depend on the specific circumstances of the recipient. The headline rates for both inheritance and gift taxes are 15% and 36.25%, but income tax may also apply, depending on the situation.