Tax
The tax system incorporates many rules and laws, and even though you do not need to know all of them, you will inevitably need to know something about the tax system. In this section of the guide you will find answers to many of the questions you might have regarding tax, such as: How much do I have to pay in taxes? How can I register my car? Can I do my tax returns electronically?
Tax in Denmark
Almost all young people and adults living in Denmark pay tax, irrespective of whether they have a job, are students, unemployed or receive money from the state or a municipality. Twice a year, everybody receives a letter from the Danish tax authority – SKAT – asking them to check and approve figures. Therefore, it is a good idea to know a little bit about the tax system and what you have to do yourself.
Why do we pay tax?
The Danish welfare state is, among other things, based on the concept of citizens having equal access to the different services paid for by taxes. Everybody must be able to get help in difficult situations, for example, in case of unemployment or serious illness. In these situations, citizens must be able to obtain financial assistance, medical help, hospital treatment etc. All children are required to attend ten years of schooling and have the possibility of undertaking higher education, all paid for by the state. The tax rate is one of the highest in the world as Denmark has a very large public sector that offers many services that people in other countries will often have to pay for themselves.
Useful links
To help you get to grips with taxes in Denmark, you might find the following links helpful:
In Denmark it is possible to deal with tax electronically. Read more about the e-tax card.
Between 10 March and 15 April each year, SKAT will send you an annual tax statement and an information card. You must check the figures on your annual tax statement and report any changes or additions. Read more about your annual tax statement.
SKAT has a special tax scheme for researchers and key employees recruited from abroad. Read more about the tax scheme for foreign researchers and key employees.
You can obtain tax deductions if you travel to work by car or public transport. Read more about commuting deductions.
You can register your foreign car in Denmark. Read more about import of used cars.
On workindenmark.dk you can find a thorough explanation of the tax rules. Read more about the tax rules.