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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
6. Does Your Company Need Foreign Workers
Some worker only pay 32.84 % tax for up to seven years
Companies can hire highly-skilled foreign workers, who only have to pay 32.84% tax for up to seven years.
In Denmark, we call this expat scheme the Tax scheme for foreign researchers and highly-paid employees.
The rules apply to anyone who both:
- Becomes taxable to Denmark because of their employment.
- Has a salary at or above 74 100 DKK(2024) per month, before labour market contributions.
This scheme is aimed at highly educated persons (including professors) and other highly-skilled workers.
There are many cases, where employees can have problems, as a result of the complicated nature of the rules. For this reason, we recommend that you seek further advice about the scheme. We can assist and advise you and your employee about which types deductions you are eligible for; and how to plan these deductions between your employee and their spouse.
To learn more about the scheme and The Danish Tax Authorities' (SKAT) requirements: click here
*SkatteInform does not take any responsibility for any actions taken based on the information provided in this article, before receiving individual tax advice.
