What you need to know about tax in Denmark
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Your tax liability determines which deductions you are entitled to. The type of tax liability that applies to you depends on factors such as whether you are married, and whether you have a home in your home country.
There are 2 types of tax liability, full and limited tax liability. Read more about tax liability:
The Danish Tax Agency has a guide to how you pay the right tax and how you are given the right tax deductions while you are working in Denmark:
You have to register before you can work and pay tax in Denmark. You can read more about this and apply for a Danish tax card and a personal tax number:
You will also need to get MitID, which is your Danish electronic ID, your digital signature:
You use MitID to log on to E-tax (TastSelv) which is the self-service system of the Danish Tax Agency. Please note that the tax assessment notice (årsopgørelsen) as well as contact and payment information is available in English at skat.dk/tastselv.
You can also use your MitID to register your non-Danish bank account as a NemKonto. All individuals and businesses in Denmark are required to have a NemKonto (Easy Account) for payments from the public sector. Contact a bank in order to open an account.
You can get more help by calling the Danish Tax Agency on (+45) 72 22 18 18 or by visiting International Citizen Service (ICS):
In Denmark, most tax information and procedures are automated via the self-service system, E-tax (TastSelv). This means that most taxpayers don't even have to file a tax return, as all the relevant information has already been reported to the tax authorities by employers, trade unions, banks, etc.
The following 2 documents are essential to your tax matters:
Your preliminary income assessment is kind of your current income and tax budget for the present year. It tells you about your expected income, tax deductions and allowances and the tax rate used by your employer to withhold tax.
Your preliminary income assessment is available each year in November, and it shows the tax authorities’ estimate of your tax for the coming year. If your financial situation changes, you should change your preliminary income assessment in order to pay the right amount of tax throughout the year. You can change it as often as you want.
When you make changes to your preliminary income assessment, you also make changes to your tax card which is automatically sent to your employer or provider.
You can see and change your preliminary income assessment in E-tax.
If you want to see your actual earnings, your tax deductions and allowances and how much you paid in tax last year, you need to check your tax assessment notice.
Your tax assessment notice is a summary of your tax for the past year, showing your income, tax deductions and allowances and tax paid, so it's kind of your tax results for the year. It tells you if you are entitled to a refund of overpaid tax or if you have paid too little tax and have to pay outstanding tax. If you are entitled to a refund, the amount will be transferred to your NemKonto automatically in most cases.
Please note that the tax assessment notice (årsopgørelsen) as well as contact and payment information is available in English at E-tax:
When you start your own business, you will be classified into 1 of 4 categories for tax purposes. The category is key in determining, for example, the deduction value of your expenses and whether loss is deductible.
Read more about how you clarify your business status for tax purposes and examples of employees.
If you live outside Denmark, are employed by a non-Danish enterprise, and you are going to work in a Danish enterprise, you are liable to pay 8 per cent labour market contributions and 30 per cent international hiring-out of labour tax. The Danish enterprise pays the tax on your behalf. After that, your employer deducts the Danish tax before they pay you your salary.
If you disagree with a decision or the way your case has been handled, you can either:
As in other countries, tax legislation is complicated in Denmark.
You can read about the Danish tax laws in the legal guide (Danish version only) of the Danish Customs and Tax Administration. It is a detailed guide in Danish with relevant reference to EU rules and court decisions that form the basis for case processing.
As a service, you can apply for a binding ruling from us if you are in doubt about what a specific transaction will mean for you or your business’s payment of tax, VAT or duties. A fee of DKK 400 (2024) is charged for a binding ruling.
You can apply for a binding ruling either online or use the paper form here 'Apply for a binding ruling'. The average response time is 3 to 6 months.
