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Taxation in Denmark

Denmark

Taxation in Denmark

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Taxation in Denmark

Denmark has put much legislation in with regards to tax in order to avoid double taxation.

Personal Tax

DKK 0 - 42,900 0%

DKK 42,900 - 389,900 3.76%

DKK 389,900 and over 15%

Social Security

Social security contributions are levied on gross salary income including some fringe benefits and contribution to an employer pension plan. Contributions on salary are withheld by the employer and are tax deductable for the employee.

Corporate Tax

Corporate tax is levied at a flat rate of 25%. There are provisions in place regarding tax depreciation/amortisation and cross border tax consolidation. Corporate tax returns must be filed annually and are due no later than six months after the end of the financial year. The financial year ends between January 1 and March 31.

VAT

VAT is known as MOMS in Denmark. The VAT rate is 25%.

Indirect Tax

Indirect taxes are imposed on certain energy, including mineral oil and electricity.

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