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Chapter 13. Taxes

This is an excerpt from the Worktrotter's Guide to Denmark.
The Worktrotter's Guide to Denmark

Taxes in Denmark are a painful topic; they are high and there is no way to sugarcoat this fact.
But before condemning the tax levels, remember that base salaries in Denmark are also high, and don’t forget what your taxes pay for: public health insurance (from which you benefit directly), education, security, child care, support for needy people, etc. – this is what a welfare state is all about, and it is financed mainly through taxes.

The tax system is confusing in any country, so this chapter aims to give you a rough understanding of the Danish tax system. Some of the areas that will be covered include: the general framework, how much you can expect to be taxed, and what options you have to reduce this amount through allowable deductions.
There are many more aspects to consider than can be explained in the scope of this book. It is best to get in touch with SKAT (the Danish tax authority) directly. Visit them during opening hours, explain your personal situation, and ask for advice.
You can find addresses and opening hours in Chapter 23.4.

Note: SKAT is constantly on the look-out for illegal work (people working “black“) and it’s often individuals that inform SKAT because they object to others enjoying illegal advantages.

If you have a certain profession and you want to help your friends in your spare time with these skills, the Danish tax authorities will agree to this only to a small extent, even if your help is free. But, you can happily help using other skills without getting in trouble. For example: if you are a software developer, you can help your friends paint their apartment, but not if you are a painter.

It is recommended to involve an accountant that can give advice on how best to use the possibilities available within the Danish tax system. Ask your friends for suggestions or check out the suggestions of other expats on the website (L163) http://www.worktrotter.dk/business.

Contents of Chapter 13. Taxes
13.1 General information
13.2 Tax rates
13.3 Tax deductions
13.4 The 25 percent tax scheme
13.5 Important tax checkpoints
13.6 Making updates

Find more details and all you need to know about the Danish tax system in the full version of the
Worktrotter‘s Guide to Denmark.

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