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10 Things You Need to Know about Tax in Denmark
- 1. When do You Become Taxable in Denmark
- 2. How to Register in the Danish Tax System
- 3. What is Included in Your Taxable Income
- 4. How Much Tax Do You Need to Pay
- 5. Social Security Network for Work within the EU
- 6. Does Your Company Need Foreign Workers
- 7. Company or Self-Employed
- 8. How to Pay Salary to Yourself as a Major Shareholder
- 9. Securities and Other Activities Abroad
- 10. How to Avoid Double Taxation
- Starting a Business
- Does Your Company Need Foreign Workers?
- COVID 19 - THE DANISH TAX AUTHORITY OFFERS AID PACKAGES FOR YOU AND YOUR BUSINESS
- Larger deductions for companies that need to invest in fixed assets or small assets
2. How to Register in the Danish Tax System
When you move to Denmark there are some administrative tasks, which must be completed.
You need to obtain the following:
- CPR number (civil registration number) or a personal tax number depending on how long you intend to stay
- Tax card (use this link)
- Bank account - a NemKonto
- NemID - single login for Danish Internet banks and government websites
Your tax card will tell you how much income tax you must pay.
Business Operators in Denmark
If you operate a business in Denmark, you must pay an advance tax, based on your expected income. It is important that the income statement is filled out as correctly as possible because you will either get money back from the Danish Tax Authorities (SKAT) at a very low interest rate, or you will be forced to pay SKAT at a high interest rate. In Denmark, there are three different methods for reporting business income. We recommend that you seek advice to find the best method to create the taxable income in the financial statement.
Employees in Denmark
If you are an employee receiving salary under the Tax scheme for foreign researchers or you are on on-loan for work in Denmark, your employer must include tax in your income. When you move to Denmark, it is important to ensure that your income statement is registered correctly. This is because the tax your employer includes in your salary is based on your registration.
At the end of the year, a tax return must be submitted to the Danish tax authorities. You need your NEMID to log in and file your tax return. Alternatively, you can choose to give us power of attorney, so that we can help you.
*SkatteInform does not take any responsibility for any actions taken based on the information provided in this article, before receiving individual tax advice.