From mid-March until 1 July 2023, you have to report your final profit or loss and complete your tax return for 2022. After you have done this, we will generate your tax assessment notice (årsopgørelsen) where you can see if you are entitled to a tax refund or if you have to pay outstanding tax.

You pay tax on your business by entering your expected profit or loss in your preliminary income assessment (forskudsopgørelsen). If your profit or loss changes, you can adjust it accordingly in your preliminary income assessment.

Enter your profit or loss in box 111 or 112 in your tax assessment notice

Enter your expected profit or loss in field 221 or 435 in your preliminary income assessment

What is a tax return and who uses it?

When you have a personally owned business, we extend your tax assessment notice with a separate section for businesses where you have to report the profit or loss of your business. This is called a tax return.

You should also use the tax return if you:

  • have non-Danish income or property
  • have rented out a home that you do not live in personally
  • are an artist and covered by the income equalisation scheme for artists
  • operate with an irregular financial year
  • own shares in investment project partnerships (ordinary or limited) (anparter) that are not subject to the rules governing such shares.

If you run your business in corporate form (partnership or limited company)

If you run your business in corporate form, you have to declare the profit or loss in E-tax for businesses (TastSelv Erhverv). Generally, companies and personally owned businesses are covered by different rules.

One of the differences is, that a company is taxed separately on its profit/loss and you will be considered an employee.

Read more about companies and funds.

The reporting deadline is 1 July

You can report hour business profit or loss for the past year from mid-March when the tax assessment notice is available and until the deadline of 1 July.

From the middle of March until the deadline on 1 July, you can apply to have the deadline for filing your tax return extended under special circumstances. 

If you do not meet the filing deadline, you will be charged a penalty for late filing of DKK 200 for each day you miss the deadline. However, the maximum of such a penalty is DKK 5,000. If your taxable income is less than DKK 568,900 in 2023 (DKK 544,800 in 2021), the penalty is DKK 100 for each day you miss the deadline and maximum DKK 2,500.

You can apply to be fully or partially exempt from this penalty if special circumstances are the reason you have not filed your tax return.

If so, you need to inform us of such special circumstances and submit relevant information for us to consider.

Request exemption from tax penalty (Ansøgningn om fritagelse for skattetillæg) (in Danish only)

Before you can report your final business result (profit or loss), you have to prepare your final accounts for the past year which is where you find the figures you have to report.

Watch the video: How to do your tax accounts

The video shows you how to prepare your tax accounts and find the figures you need to enter in your tax return.

Tools to help you prepare your accounts

We know it may be difficult to manage tax matters - particularly for newly established businesses. At our Danish website we offer help and tools especially for newly established business at Start-up with skat. Currently, the site is in Danish only.

Find tools to help you prepare your business tax account and business result (link in Danish).

You report your business profit or loss by completing your tax return in E-tax for Individuals (TastSelv Borger). You also need to enter your accounting information in your tax return. Additionally, you need to enter information in certain boxes depending on the type of business and the turnover. Some citizens will also have to submit their business tax accounts. 

If you have more than one business, you report the total result in your tax return in E-tax for individuals, but enter the accounting information for each business.  

Once you have entered your profit or loss and accepted your entries, we generate your tax assessment notice (årsopgørelse).

If your business net revenue is more than DKK 300,000, you have to report the result of your business and enter your accounting information in you tax return in E-tax for individuals. You do not have to submit your tax accounts. 

Report the result and enter accounting information in your tax return

Watch video: This is how you report your business result if the revenue is more than DKK 300,000

Watch the video about how you report your business result and the additional accounting information when your revenue is more than DKK 300,000.

(17:15 min.) (Click cc for English subtitles)

Download an example of accounting information in Danish (pdf)

If your business net revenue is less than DKK 300,000, you have to report your business result and complete certain boxes under accounting information (regnskabsoplysninger) in your tax return in E-tax for individuals.

You need to enter: 

  • Business CVR no. (Business registration no.) in box 300.
  • Outstanding VAT or VAT receivable if you are registered for VAT in box 638.
  • Select ‘Ja, fritaget fordi nettoomsætningen er under 300.000 kr.’ (Yes, exempt because the net revenue is less than DKK 300,000.) in box 301/302.
  • Information about accounting assistance in box 303

This all you need to enter under accounting information. And you do not have to submit your tax accounts. 

Report the result and enter accounting information in your tax return

Watch video: This is how you report your business result if the revenue is less than DKK 300,000

Watch the video about how you report your business result and accounting information when your revenue is less than DKK 300,000.

(13:08 min) (Click cc for English subtitles)

If your business is exempt from reporting accounting information, you still have to report the business profit or loss and complete certain boxes under accounting information in your tax return in E-tax for individuals. 

Business owned by 2 or more people who do not take an active part in running the business

If you own a business with 2 or more owners and none of the owners participate considerably in the running of the business (limited partners/anpartsvirksomhed (kommanditister/anpartsvirksomhed)) you have to report the business profit or loss in your tax return and submit your tax accounts in E-tax for individuals. You do not have to enter further accounting information in your tax return. 

Unless your business is subject to the rules on joint tax accounts.

Report the result in your tax return

Rental of up to 2 leases in real property

If you offer up to 2 leases in real property (including parents renting out to their children) and your revenue is less than DKK 300,000, you have to report your business result and complete certain boxes under accounting information in your tax return in E-tax for individuals. 

You need to enter: 

  • Business CVR no. (Business registration no.) in box 300.
  • Outstanding VAT or VAT receivable if you are registered for VAT in box 638.
  • Select ‘Ja, fritaget efter virksomhedstype’ (Yes, exempt according to business type) in box 301/302.

This is all you need to enter under accounting information. And you do not have to submit your tax accounts.

Report the reuslt and enter your accounting inforamtion in yoru tax return

Other rules apply if, for tax purposes, your business is a non-commercial business (a hobby business). In this case, you cannot deduct a loss and you have to enter information in other boxes.

Are you unsure of whether your business is a commercial business and do you need to know how you report your result, you can read more about what you need to do as a non-commercial business (hobby business)

Log on to E-tax for individuals using your NemID/MitID  

  1. Click 'Ret årsopgørelsen/selvangivelsen' (Change your tax assessment notice/tax return).
  2. Certain figures in your tax return will be pre-printed. Consider if these figures are correct and make relevant corrections.
  3. Click 'Næste' (Next) to enter your business profit in box 111 or your loss in box 112. Check to see if you need to complete other relevant fields.
  4. Scroll down to ‘Regnskabsoplysninger' (Accounting information) and click ‘Oplys' (Make your declaration). Complete relevant fields.
  5. Click 'Gem' (Save). You will be asked if you want to enter information for other businesses. If not, click 'Tilbage' (Back).
  6. Consider if you need to enter any other information in your tax return. Remember that your tax return applies to both your business and your private financial situation.
  7. Click 'Næste' (Next) and then 'Godkend' (Accept).
  8. Once you have completed your tax return, you will see a receipt and you can see your tax assessment notice. If something is incorrect, you will be prompted to complete missing information before your tax assessment notice can be generated.
  9. Your tax assessment notice will show if you have paid too much tax and are entitled to a refund of overpaid tax or if you have paid too little tax.

If you have stopped running your own business, renting out property or similar in 2021, you still have to do your reporting. 

So, if you are no longer running your own business or renting out property or similar you should:

  • report your profit in box 111 or loss in box 112 in your tax assessment notice
  • report that your business is closed by ticking off box 71 in your tax assessment notice
  • Deregister your business CVR no. at indberet.virk.dk
  • Delete any amount relating to your own business in field 221 or field 435 or other fields relevant to your business in your preliminary income assessment for 2022. If you don't do this, you risk having to report the information again next year vefore we can generate your tax assessment notice.

You can read more about closing your business here.

Log on to change your preliminary income assessment

Log on to report to your tax assessment notice

Paying tax on your business on a regular basis

You pay tax on your business on a regular basis by entering your expected profit or loss in your preliminary income assessment.

You must pay tax on a sale when you issue the invoice. Even if you have not been paid. This way you ensure that your tax is paid on a regular basis.

Remember to make corrections if your financial situation changes

Please note that you can change your preliminary income assessment if the profit or loss of your business changes. The more precise your preliminary income assessment is, the more unlikely it is that you have to pay outstanding tax at the end of the year.

In March, you enter your final proft or loss in your tax assessment notice/tax return. Once you have completed and accepted your tax return, you will receive your tax assessment notice telling you if you are entitled to a tax refund or if you have to pay outstanding tax.

Have you just started your business?

At our Danish website we offer help and tools especially for newly established business at Start-up with skat. Currently, the site is in Danish only.

Learn about preliminary tax assessment and regular tax payments (in Danish)

Or you can see our webinars on tax and VAT for newly established businesses.

Sign up for webinars and see our video on tax and VAT

Follow our guide: How to change your preliminary income assessment

 

This is what you do

Select Egen virksomhed (own business)/ udlejningsejendom (rental property) under Oftest tilføjede felter (Most frequently added fields).

Enter your expected profit in field 221 or your expected loss in field 435.

Scroll to the bottom of the page and click Beregn (Calculate).

Check under Nyt skattekort (New tax card) to see if there is entered an amount for B-tax.

If so, you have to pay tax on your profit by means of B-tax instalments.

If there is no amount for B-tax, the tax on your profit will be withheld via your other income.

Read more in Danish about tax on profit under Step 3: Pay tax.

Click Godkend (Accept).

You have now corrected your preliminary income assessment).

    As an alternative to paying tax according to the general tax rules, you can choose to be taxed according to the return on capital tax scheme or the business tax scheme. Both schemes require lot of accounting work on your part, and it is usually a good idea to leave it to an accountant.

    The business tax scheme enables you to:

    • have your business interest expenses taxed as personal income and not as capital income. By doing so you pay less labour market contributions (am-bidrag) and possibly less top-bracket tax than according to the general tax rules.
    • save up in your business against paying tax on an ongoing basis. This means you can save up in good years and withdraw saved up profits in bad years.

    If you save up in your business, you will be taxed at a rate of 22% on the part of the profit that you save up. When you withdraw an amount from the savings, you are taxed as for personal income, and the tax you have already paid will be deducted.

    If you opt for the business tax scheme, you will have to separate your personal finances from your business finances. You can choose to be taxed under the business tax scheme in your preliminary income assessment by ticking field 184, but the actual choice is not made until when you complete your tax return (by ticking box 147).

    The return on capital tax scheme may be a good alternative to the business tax scheme as this scheme is easier to manage.

    A return on capital tax is calculated, which is taxed as income from capital instead of personal income. By doing so you pay less labour market contributions and possibly less top-bracket tax than according to the general tax rules.

    The return on capital cannot be more than the largest of the following two amounts:

    • Profit from business or
    • The total negative income from capital (excluding the calculated return on capital)

    You can choose to be taxed under the return on capital tax scheme in your preliminary income assessment by ticking field 184. However, you do not make your final decision about the scheme until you complete your tax return which is available in early March. You should complete box 141 under ‘Virksomhedsoplysninger' (Business information).

    Please see our legal guide (in Danish) for further legal information.