What is udbytte (dividends)?

In short

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.

In practice

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.

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

Related terms

• Egenkapital (equity)
• Selskabsskat (corporate tax)
• See every term in the dictionary

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