Danish B-tax

In Denmark, the B-tax is a tax that a sole proprietorship is required to pay on its profit (while the A-tax is Denmark's employment tax). The owner of a sole proprietorship makes a partial payment during the year in ten equal installments, which are calculated on the basis of a "self-assessment," i.e., his estimate of the company's potential profit, declared by the SKAT Borgerna page of a special form - Forskudsopgørelse.

After the end of the fiscal year, a Danish entrepreneur is required, based on financial reports prepared by an accountant, to pay tax on the actual profit of his sole proprietorship by submitting an annual tax return - årsopgørelse - to the Danish tax authority (Skattestyrelsen). You can be fined (up to DKK 5,000) for failing to file your annual tax return by the deadline.

[infografika] Based on the completed tax return (self-assessment), SKAT sends a tax decision:
1. if the owner of a Danish company has paid too little income tax, he will have to make a surcharge.
2. On the other hand, he will receive a refund if he has previously overpaid income tax.

A business owner in Denmark is required to prepare his tax return accurately and update it regularly, taking into account any decrease or increase in the profit of his business in a given tax year, so as to avoid being charged interest for late payment of tax.

The b-tax must be paid by the 20th of each month in 10 equal installments (January through May and July through November; no tax is paid in June and December) by automatic transfer or by using the payment identifier from the SKAT Borger website (IBAN/SWIFT in the case of foreign bank accounts).