Preliminary corporate tax is a prepaid tax that companies must pay based on the company's expected income. The amount is calculated based on the company's taxable income from previous years and is adjusted at year-end when the final tax assessment is issued by the Danish Tax Agency.
Frequently Asked Questions About Preliminary corporate tax
What is Preliminary corporate tax?
Preliminary corporate tax is prepaid tax that companies pay twice annually to cover the expected corporate tax.
When must Preliminary corporate tax be paid?
There are two annual installments:
• March 1
• November 20
How is Preliminary corporate tax calculated?
The amount is calculated based on the company's taxable income from previous years and is adjusted at year-end when the final tax assessment is issued by the Danish Tax Agency.
Can you change your Preliminary corporate tax?
Yes, you can both increase and decrease it if you expect a different result than calculated. The change must be made within the deadlines, March 20 and November 20.
What if I pay too little?
Then you must pay residual tax, often with an interest surcharge.
What if I pay too much?
You will receive the excess tax refunded with a small interest supplement.
Can you pay extra?
Yes, voluntary payments can be made up until February 1 of the year following the income year.
What about new or dissolving companies?
• Newly established companies normally do not receive an assessment in the first year.
• Dissolving companies may still receive assessments until the Danish Tax Agency has processed the dissolution.
Disclaimer
As the above is for guidance purposes only, we accept no liability for decisions that may be made based on the above without prior individual advice. We accept no liability for errors and omissions.
