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Taxes

Denmark is an advanced welfare state. This means that a number of important services are covered through taxes, such as healthcare. Here is what you need to know about paying tax in Denmark

With an extensive public service, income tax rates in Denmark are among the highest in the world. However, the tax system is progressive – the more you earn, the higher taxes you pay.

STDK. Snow in Copenhagen2

 

This form is used for obtaining a personal tax number and/or a tax card, which you will need when earning income in Denmark. The tax card contains information about your withholding rate, your monthly tax-free allowances and deductions. When you have obtained a tax card, it will be sent directly to your employer.

It is also possible to receive guidance by tax professionals at the International Citizen Service, which has offices in Aalborg, Aarhus, Copenhagen and Odense.

 

More information about working in Denmark is available at Your guide to working in Denmark.

 

Do I need to pay taxes in Denmark?

All residents and everyone earning a salary in Denmark are liable for Danish taxation. As a rule you must pay tax on all your earnings in Denmark – and on those you earn abroad. The amount of tax will depend on your annual income and tax liability.

When you are working and getting paid in Denmark, you must pay income tax. You can see the amount of tax you must pay on your tax card. 

What is a tax card?

If you have a salary income in Denmark you must apply for a tax card from your local tax office. A tax card is an official document that indicates how much tax you have to pay.

How do I get a tax card?

Once you have received your Civil Personal Registration number (CPR number) you must contact Skattestyrelsen (Danish Tax and Customs Administration) and inform them how much you expect to earn in the calendar year.

You can obtain a tax card by filling out an online application form:

This form is used for obtaining a personal tax number and/or a tax card, which you will need when earning income in Denmark. The tax card contains information about your withholding rate, your monthly tax-free allowances and deductions. When you have obtained a tax card, it will be sent directly to your employer. Your income tax is then automatically deducted at source from your wages by your employer before you receive your pay.

Contact Skattestyrelsen at tel.: +45 72 22 27 80 or find the address of your nearest tax office at www.skat.dk . It is also possible to receive guidance by tax professionals at the International Citizen Service, which has offices in Aalborg, Aarhus, Copenhagen and Odense.

When you leave Denmark

If you leave Denmark your taxability has to be determined. Therefore, you must remember to inform Skattestyrelsen before you move abroad (incl. to Greenland/ Faroe Islands). When you leave you must follow a guide which you find here:

Useful links

Skattestyrelsen (website in English)
https://www.skat.dk/skat.aspx?oid=3099

04.063 (Danish/English version)
http://www.skat.dk/getFile.aspx?Id=77649

The Danish Tax and Customs Administration
http://www.skat.dk/SKAT.aspx?oId=2166790&lang=us

04.029 EN
https://www.skat.dk/getFile.aspx?Id=123148

More information about working in Denmark
https://skat.dk/skat.aspx?oid=2274194

Did You Know?

In Denmark taxes fund a free education. After ten years of compulsory school attendance, education is also free at high schools and higher education institutions