Salary or dividends: how should you pay yourself from your ApS?

How salary is taxed

Salary is an operating cost for the company and reduces its taxable profit. You personally pay 8% labour-market contribution (AM-bidrag) plus ordinary income tax. Salary also opens pension options and counts toward unemployment and parental-leave rights — dividends don't.

How dividends are taxed

Dividends are paid from profits after 22% corporate tax. You then pay dividend tax: 27% up to the year's share-income threshold and 42% above it. The threshold is adjusted every year — check the current figure with the Tax Agency before deciding the year's dividend.

The rule of thumb

For most owner-managers the sweet spot is salary up to around the top-tax threshold, then dividends up to the 27% threshold. Salary below top tax carries roughly the same combined tax burden as dividends — but comes with rights and pension on top.

The exact balance depends on your municipal tax, pension and family situation — have it calculated properly before you commit.

The practical side

Salary requires the company to be registered as an employer and to report to eIndkomst every month — a payroll system like Danløn or Salary handles that, and at Numina every payroll run is booked automatically. Dividends are decided at the general meeting (ordinary or extraordinary) and must be reported and withheld correctly. Your bookkeeper makes sure both land properly in the accounts.

The terms behind it, briefly explained

Finally a quick glossary of the terms from this article — brief and concrete, the way we explain them to our customers.

What is udbytte (dividends)?

Udbytte is the part of a company's profit distributed to the owners. It's taxed as share income: 27% up to the year's threshold and 42% above.

Dividends are decided at the general meeting based on the annual report and must be reported and withheld correctly. For owner-managers, combining salary and dividends is often optimal.

What is udbytteskat (dividend tax)?

Udbytteskat is the tax on dividends from companies. Dividends are taxed as share income: 27% up to the progression threshold (DKK 79,400 in 2026) and 42% above.

The company withholds 27% at distribution and reports it to the Tax Agency; any remaining tax is collected via the annual assessment. Spouses can share thresholds, doubling the 27% band. Remember: the company already paid 22% corporate tax on the profit.

What is aktieindkomst (share income)?

Aktieindkomst is income from shares — dividends and gains on sale. It is taxed at 27% up to the progression threshold (DKK 79,400 in 2026) and 42% above.

Share income is assessed separately from salary and other personal income, and neither labour-market contribution nor top tax applies. For ApS owners it is central: dividends from your own company are taxed exactly as share income.

What is A-indkomst (income taxed at source)?

A-indkomst is income where the employer withholds tax before payout — first and foremost salary. The withheld tax is called A-skat and is settled automatically with the Tax Agency.

The counterpart is B-income, where the recipient settles the tax themselves. Pay salary to employees — or to yourself from your ApS — and the business must register as an employer and report the salary to the eIndkomst register monthly.

What is bruttoløn (gross salary)?

Bruttoløn is salary before tax and labour-market contribution — the amount in the employment contract. Net salary is what lands in the account after tax.

From gross salary, own pension and ATP are deducted first, then the 8% labour-market contribution, and finally A-tax per the tax card. For the business, the true cost is higher than gross salary — pension, holiday pay and ATP come on top.

What is AM-bidrag (labour-market contribution)?

AM-bidrag is an 8% tax on all work income — salary as well as profit from self-employment. It's calculated before ordinary income tax.

As self-employed you pay it on the business profit via the annual tax assessment; as an employee it's withheld from the salary automatically.

What is A-skat (withheld income tax)?

A-skat is the income tax an employer withholds from employees' salaries and pays to the Tax Agency together with AM-bidrag.

If your company has employees (even just you), it must register as an employer and report salaries to eIndkomst monthly — payroll systems like Danløn and Salary handle that.

What is eIndkomst (the Danish income register)?

eIndkomst is the Tax Agency's register where every employer reports salary, withheld tax and labour-market contribution for their employees each month.

Reporting happens automatically through payroll systems like Danløn and Salary. The data feeds employees' annual tax assessments — and is used by banks and public authorities. The deadline is generally the 10th of the month after payday; large companies have a shorter one.

What is ATP (the mandatory labour-market pension)?

ATP (Arbejdsmarkedets Tillægspension) is a mandatory pension scheme for employees. For a full-time employee the contribution is DKK 297 a month in 2026 — the employee pays a third, the employer two thirds.

ATP is deducted automatically through payroll and collected quarterly. On top come the other employer contributions (AUB, Barsel.dk and more), which are calculated from the ATP contribution. Owners taking no salary from their own company pay no ATP.

What is feriepenge (holiday pay)?

Feriepenge is the holiday entitlement employees earn: 12.5% of pay for hourly workers — or paid holiday plus a 1% supplement for salaried staff.

Employees earn 2.08 holiday days per month, usable as they are earned (concurrent holiday). Holiday pay for hourly workers and departed salaried staff is reported and paid to FerieKonto or a holiday fund through the payroll system.