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General information about tax in Denmark

The leaflet Tax in Denmark – An introduction for new citizens, is a guide for newcomers to Denmark who want to learn more about the tax system in this country. Please note, that the booklet was published in 2005, and it does not include the tax changes adopted in the connection of the Tax Reform Act 2009. You can read about the change here.

You can also find information about tax and the rules that apply to people who have just moved to Denmark in the guide Taxation – when moving to Denmark.

Multimedia tax

This tax was introduced on 1 January 2010 and is applied when your employer provides you with multimedia devices that can be used for private purposes at home. Such devices include a mobile phone, a computer and free access to the internet. The existing tax is 3.000 kr. per year, regardless of whether you use one or more multimedia devices. Multimedia tax is not one of the new taxes, but a fixed added value to the bonuses offered by your employer in form of payment for a computer, a mobile phone or an internet connection that you also can use at home.

Please do not mix this with media license / DR license, which has to be paid for the right to watch DR produced channels.

At the moment the new government is reconsidering the multimedia tax, which might mean that a free telephone will be taxed with 2.500 kr., with a discount given to a spouse. The government is also considering an altogether abolishment of the multimedia tax already in 2012. International Community will update the information as soon as the government makes a new finance law. Until then you are advised to contact SKAT at: +45 7222 1818.

Stating your deductibles and allowances

Some of the tax deductions and allowances to which you are entitled will automatically be included on your income assessment. However, you must report certain deductions and allowances yourself on your preliminary income assessment and income tax return. Note that even though some deductibles are included on your income assessment, you are still required to check that the information listed is correct and report any discrepancies to SKAT. You can see where on your income assessment your deductibles are listed on SKAT’s example of a preliminary income assessment of 2009.

Examples of allowances and deductions

The general idea behind some of the allowances and deductions are that people should only pay tax on disposable income. You are, for example, entitled to deduct expenses if you:

Travel more than 12 kilometres in each direction between your home and work.
Pay a membership fee to a trade union and/or an unemployment insurance fund.
Make payments to a private pension scheme.
Pay interests expenses.

For more examples of allowances and deductions, see the leaflet Tax in Denmark – An introduction for new citizens, and on Work in Denmark’s website.

Contacts and further information

A wide range of information is available on SKAT’s website: www.skat.dk.

More information on allowances and deductions is to be found in SKAT’s leaflet Tax in Denmark, An introduction – for new citizens. You will also find some information regarding allowances and deductions in SKAT’s guide ”About tax – for people resident abroad and working in Denmark”. The guide is intended for individuals from other countries coming to Denmark to work for a limited period of time. The guide explains how to obtain a tax card, how tax is deducted from your income and which allowances and deductions you are entitled to.

Further information about the Danish tax system in relation to pension plans is available in SKAT’s guides: Tax and pension plans - for those with a pension plan in Denmark or another EU or EEA member state and Tax and pension plans - for migrant workers who come to Denmark from another country to work.

If you have any questions you can always call SKAT on telephone +45 72 22 18 18.

You will also find some information about tax in Denmark on Work in Denmark’s website.

Contacts and further information

For information about SKAT and taxes in Denmark, see the SKAT website: www.skat.dk

You can also call SKAT on +45 72 22 18 18

In the pamphlet Tax in Denmark, An introduction – for new citizens, you can learn about the Danish tax system. Please note that the booklet was published in 2005, and it does not include the changes adopted in the connection of the Tax Reform Act 2009. You can read more about the changes here.

Information about tax in Denmark is also available in SKAT’s guide”About tax – for people resident abroad and working in Denmark”. The guide is intended for individuals from other countries coming to work in Denmark for a limited period of time. The guide explains how you obtain a tax card, how tax is deducted from your income and which allowances and deductions you are entitled to.

On the SKAT website you will find a guide about the preliminary income assessment for 2009. The guide contains the most common tax rules applicable to salaried staff/wage-earners and pensioners and indicates when and how you should change your preliminary income assessment and shows examples of tax calculations.

You can find your local SKAT service office, on SKAT’s website - If you do not understand Danish, please follow this guide:

Tick the box in front of the word “Skattecentre”, which is listed in the column on the left hand side.
Enter “the post code of your town” (4 digits only) in the search field “Postnr. eller by:”.
Click on the “søg” button.

The location of SKAT’s service centers in your area will then be marked of as small buildings on the map. Place your cursor over the building, and the address of the service office will be displayed. “Skattecentre” means tax service offices, “Postnr. eller by” means post code or town/city, “Søg” means search.

Taxation on motor vehicles

Owners of motor vehicles are liable to vehicle tax. You can find information about vehicle taxation on the Danish Tax Authorities – SKAT´s website.

You are entitled to tax allowances and relief on the contributions you pay into an approved pension plan or plans. However, in order to qualify for the allowances on, and deductions from, payments toward a pension plan, the plan must be approved by SKAT Read more about how to get your pension plan approved on SKAT’s website.