The ordinary tax on account is paid twice a year in equal installments. The installments are calculated as half of the average of the last three years' corporate tax.
A company is also free to choose whether to pay voluntary tax on account. The deadlines for voluntary tax on account are March 21, 2022 for the first installment, November 21, 2022 for the second installment and February 1, 2023 for the third installment.
The vast majority of the corporation tax paid by Danish companies is paid as voluntary tax on account. In other words, earlier than the companies are obliged to. They do this because it is the most financially advantageous option.
It largely depends on your surplus liquidity. It is recommended to make an estimate of expected corporate tax payable for the year.
Whether it's worth it depends from company to company, but a good rule of thumb is:
If the company has liquidity at its disposal from which negative interest is paid, voluntary payment of tax on account should be made now.
However, companies that need to borrow for tax payments should pay in November at the earliest.
You can get reduced on-account tax rates if the company expects the corporate tax for 2022 to be significantly lower than the calculated on-account tax.
The deadline for reducing the rates follows the same deadlines as for reporting.
Reduction of tax rates on account is done by digital reporting in TastSelv Erhverv.
Remember to set up any voluntary payments in TastSelv Erhverv before the actual payments are made. Otherwise, the voluntary payment will be refunded.
How to report:
You are also welcome to contact us by phone +45 3929 0800 or write to us at buusjensen@buusjensen.dk