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Who is liable to pay Danish Income Tax?

All residents of Denmark are liable to pay income tax on their worldwide income. Non-resident individuals are only liable to income tax on income specified as Danish source income under Danish law.

Who is a Tax Resident of Denmark?

An individual is considered a Danish resident if his/her permanent residence is in the Denmark or he/she resides usually in the Denmark for at least 183 days in a given calendar year, either continuously or intermittently.

What is the tax year end?

31st December

When are tax returns due?

Individual tax returns must be filed no later than on 1st July of the year following the tax year.

Is there a personal tax allowance?

Individuals are entitled to an annual personal allowance of DKK 46,200, i.e. the first DKK 46,200 of taxable income is tax free.

What are the tax rates?

Net taxable income is taxed at a progressive rate ranging from 8% to 56.5%.

What are the social security rates?

Employees are required to contribute DKK1,080 per year in social security payments.

Can I be self-employed, or must I become an employee to work in Denmark?

You can be self-employed in the Denmark. Contact us for more details.