The Danish Tax Assessment Act is a Danish act that regulates the principles for how taxable income is calculated and taxed. The act contains rules on income, deductions and various forms of tax relief.

Important provisions in the Danish Tax Assessment Act include (not exhaustive):

• Rules on income and deductions for individuals
• Rules on income and deductions for companies
• Rules on tax relief for foreign tax
• Rules on employee benefits and company cars

All taxable persons and companies in Denmark can be covered when their circumstances are regulated by the act.

Some provisions apply only to individuals (for example commuting deduction), others only to companies (for example transfer pricing).

The act grants the right to a deduction for expenses for transport between home and workplace.

The deduction is calculated based on kilometres and distance, not actual expenses, and the rate is set annually.

Section 33 concerns credit relief for foreign tax. Foreign tax paid can be deducted from the Danish tax on the same income.

Section 33 A concerns exemption relief. Income can be exempted from tax in Denmark if the conditions for a stay abroad (6‑month / 42‑day rule) are met.

These are internal Danish rules. There is also the possibility of relief under a double taxation agreement with the country of work.

A company car made available for private use is taxed as a percentage of the car’s value, with minimum and maximum limits.

The rules also specify how electric and hybrid cars are treated.

The State Tax Act lays down the fundamental principles for the taxation of income, wealth and deductions for expenses related to earning the income.

The Danish Tax Assessment Act is a “special act” that collects and clarifies the taxation of income and deductions for expenses that do not have a legal basis in other parts of the tax legislation, for example on employee benefits, deductions and international matters.