A.P. Møller-Mærsk generated a profit of 45 billion kroner in 2024, making it Denmark’s second most profitable company, yet its parent company A.P. Møller Holding paid just 136 million kroner in corporate tax. This stark contrast with companies like Novo Nordisk, which paid 21.6 billion kroner on a 101 billion kroner profit, stems from different taxation rules for shipping companies and international business structures.
Why Maersk and Novo Nordisk Pay Vastly Different Tax Amounts
The Danish Tax Ministry’s annual list reveals a dramatic difference in how two of Denmark’s biggest companies contribute to the national treasury. While Novo Nordisk paid billions in corporate tax, Maersk’s Danish tax bill landed at just 136 million kroner despite massive profits.
According to Henning Boye Hansen, a tax expert at BDO Revision, the explanation is straightforward. The two companies operate under fundamentally different tax regimes. Novo Nordisk pays the standard 22 percent corporate tax on its profits, while Maersk’s primary activities fall under tonnage tax rules designed specifically for shipping companies.
Tonnage tax allows shipping companies to pay taxes based on vessel size rather than actual profits. This system helps Danish shipping companies compete internationally with foreign rivals that often operate under more favorable tax conditions. As a result, comparing their tax payments directly doesn’t paint an accurate picture of their actual contributions or tax compliance.
Global Tax Obligations Beyond Denmark
Maersk’s global footprint means its tax obligations extend far beyond Danish borders. According to the company’s 2024 annual report, Maersk paid 584 million dollars in taxes worldwide, equivalent to over four billion kroner. This figure reflects taxes paid across numerous jurisdictions where the company operates.
The company’s press department explains that beyond shipping activities, Maersk also pays taxes on port terminals and logistics operations in the countries where these revenues are generated. This follows standard international tax principles where companies pay taxes in the jurisdictions where they earn their income.
In 2010, Maersk paid 26.2 billion kroner in global taxes, representing 48 percent of its pre-tax profit. Of this amount, 9.5 billion kroner went to Denmark alone, including 6.6 billion kroner in hydrocarbon tax and 2.9 billion kroner in corporate tax. This historical context shows Maersk’s significant past contributions to Danish revenues, particularly when it still operated North Sea oil and gas assets.
Foreign Companies and Low Tax Payments in Denmark
Maersk isn’t the only major company with relatively modest Danish tax payments. Foreign companies like Google, which ranked 388th with 21.5 million kroner in taxes, and Facebook, which paid no tax in Denmark in 2024, also appear low on the list.
Foreign companies generally pay Danish taxes only on profits generated through Danish activities. However, large investments can be deducted, potentially eliminating taxable profits even when companies have substantial operations in Denmark. This arrangement follows established tax rules rather than indicating improper behavior.
Henning Boye Hansen notes that the Danish Tax Agency has dramatically increased oversight in this area. Multinational corporations must now submit extensive documentation about their internal pricing arrangements to prove they’re not shifting profits to lower-tax jurisdictions. Companies cannot simply charge inflated interest rates on loans from foreign subsidiaries when cheaper financing is available locally.
Tax Haven Subsidiaries and Compliance
Maersk maintains over 60 subsidiaries in tax havens like Bermuda, making it the Danish conglomerate with the most such entities. Despite this structure, the company asserts full compliance with Danish rules on Controlled Foreign Companies (CFC), which require taxation of financial income from these subsidiaries in Denmark. Audits have confirmed this adherence to regulations.
These structures allow lower taxes on local activities in low-tax jurisdictions. However, substantial foreign financial gains remain subject to Danish taxation under CFC rules, ensuring that Denmark receives its share of certain types of income regardless of where subsidiaries are located.
For individuals working in Denmark, understanding tax obligations can be complex. The expatriate tax scheme offers special benefits for highly paid foreign workers and researchers coming to Denmark.
Why Some Major Companies Don’t Appear on the Tax List
Interestingly, Novo Nordisk itself doesn’t appear on the tax list despite earning 101 billion kroner in 2024. Neither does Coloplast, which had a 2.7 billion kroner profit. The explanation lies in how large corporate groups structure their tax payments.
These companies pay taxes through their parent holding companies rather than in their own names. For Novo Nordisk, this means payments flow through Novo Holdings, which topped the 2024 list with 21.6 billion kroner in corporate tax. For Coloplast, taxes are paid via NPLH Holding ApS, owned by Niels Peter Louis-Hansen, son of Coloplast’s founder.
This consolidated taxation occurs when a parent company owns the majority of voting shares in its subsidiary. According to Coloplast’s website, NPLH Holding ApS owns 62.58 percent of shares and 71.13 percent of votes in Coloplast Holding. In 2024, NPLH Holding ApS paid 119.3 million kroner in corporate tax, ranking 71st on the list.
No Tax Advantage from Holding Structure
Some might assume that paying taxes through holding companies offers advantages for reducing tax obligations. However, Henning Boye Hansen firmly dismisses this notion. The holding structure has no impact on the actual amount of corporate tax owed. Whether a company pays taxes directly or through its parent holding company makes no difference to the total tax bill.
Denmark’s Total Corporate Tax Revenue
Despite variations in individual company payments, Danish corporate tax revenues remain robust. In 2024, total corporate tax from Danish firms reached 112 billion kroner, the second-highest amount ever recorded. Novo Holdings alone accounted for 15 percent of every 100 kroner paid in corporate tax.
The previous year saw 102 billion kroner in corporate tax, with the top ten payers contributing 36 percent and the top 100 contributing over 50 percent of the total. This concentration demonstrates how a relatively small number of large, profitable companies drive Denmark’s corporate tax revenues.
Pharmaceutical and manufacturing companies contributed approximately 70 billion kroner combined in 2024. Finance Minister Ane Halsboe-Jørgensen praised these contributions, emphasizing their crucial role in funding public services.
Maersk’s Changing Tax Profile
Maersk’s tax situation has evolved significantly over the years. Historically, the company benefited from tax rebates related to the Tyra gas field rebuild, which cost over 20 billion kroner before Maersk sold its North Sea assets in 2017. This sale fundamentally changed the company’s Danish tax profile, removing the substantial hydrocarbon taxes it previously paid.
Looking ahead to 2025, Maersk has provided pre-tax profit guidance of zero to three billion dollars, reflecting volatility in the shipping industry amid Red Sea disruptions. This conservative guidance might prove pessimistic if current freight rates persist, but it illustrates the cyclical nature of the shipping business and its impact on tax contributions.
Meanwhile, the tax expert’s warning remains relevant. Skatteministeriets list works well for comparing similar types of companies, but it fails when trying to compare shipping companies or oil and gas firms with standard businesses. Different tax regimes make direct comparisons misleading at best.
Sources and References
The Danish Dream: What is the Expatriate Tax Scheme?
The Danish Dream: Best Tax Advisor in Denmark for Foreigners
DR: Mærsk tjente 45 milliarder kroner: Er uden for top 50 på skatteliste
