Taxes in ApS company

A Danish private limited company, just like a public limited company, is required to pay corporation tax on its profits. On the other hand, personally owned small businesses are usually not subject to this type of taxation due to the application of different tax rules.

Private limited companies are subject to a corporate tax - 22%. This rate is viewed as appealing, because it is relatively low.

The corporation tax is computed by considering the company's taxable profits, which is the income left over after eligible expenses have been deducted. The deductible expenses are subtracted from the profits to determine the taxable income.

Companies often experience years in which they do not pay corporation tax due to fluctuations in their taxable income. This can be due to various factors, including write-offs, losses from previous years, or investments that can lower the amount on which corporation tax is calculated.