Running a sole proprietorship in Denmark involves doing your taxes annually. This process can be complicated for people who are not familiar with the Danish tax system. In this article we will discuss the basic issues about the annual tax return of a sole proprietorship in Denmark.


The annual return in Denmark is an important obligation for the sole trader as it allows him to determine his tax liability. The entrepreneur should carefully analyse his or her business income and expenses in order to avoid unnecessary tax problems. The Danish tax authority, SKAT, also offers support and advice to entrepreneurs who have difficulties with their annual tax return. Support can be obtained for the settlement of taxes, VAT, income and expenses. Carefully observe the settlement deadlines, as exceeding the deadline may result in financial penalties.

Tax settlement in Denmark

In Denmark, the tax authority, SKAT, recognises income from a sole proprietorship, Enkeltmandsvirksmhed, as income of the owner. Accordingly, company tax is declared on a single form. Income taxes and VAT must be filed quarterly or half-yearly. In addition, an annual settlement for businesses in Denmark is carried out, which allows taxes to be settled for the entire tax year.

Annual settlement for a one-person company in Denmark

Annual tax settlement for a sole proprietorship in Denmark is carried out by means of the Selvangivelse, or tax return, form. The entrepreneur receives it from the tax office, SKAT. The entire settlement process can be carried out online, which means that there is no need to go to the office in person.

Deadline for the Danish annual tax return

The deadline for the annual return of a sole proprietorship in Denmark is 1 July of the year following the year to which the return relates. The entrepreneur should submit the return by this date. After 2 July, the tax office in Denmark will issue a tax decision, Årsopgørelse, which indicates whether the tax is to be refunded or whether a surcharge has to be paid.

If you need help with your taxes in Denmark, is the place to go. They offer a wide range of services and information on taxes in Denmark, from basic tax advice to more advanced tax planning services. Their website has an easy-to-use tax calculator to help you estimate your taxes based on your

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