Danish taxes

The Danish tax rules are not the simplest. At the same time, the taxes themselves are quite high, although the fact that the tax threshold depends on the income is very helpful in this respect. Thanks to this, our earnings stay in our pockets for the most part. So if you plan to work or set up your own company in Denmark, it is worth to find out some important information on this subject.

Danes have structured the tax system in their country carefully. All the rules are designed to take into, account the exact situation of different groups: regular employees of a Danish company, self-employed as well as company presidents or shareholders. Thus, according to the regulations, taxpayers whose income is lower than DKK 50,217 are subject to a deduction of 8 % rate on income, while those whose income is higher, but at the same time does not exceed the threshold of DKK 558,043 – 39.2%. On the other hand, those earning even more (above DKK 558,043) will have to pay 56.5% income tax (2023).

One of the biggest advantages of the Danish tax system are the allowances. In Denmark, costs such as pension and insurance contributions, alimony, food costs and transport from the place of residence to the place of work can be deducted from tax. Obviously, all of these must be supported by appropriate documents, such as a bill of rent for your flat, as SKAT has the right, to check within 7 years whether you are actually entitled to a tax refund. At the same time, it is worth knowing that in 2020, the tax-free amount in Denmark is DKK 46,700. This means that all taxpayers with less income were exempt from this obligation.

Those with a tax burden, are in practice divided into two groups, one of which has a limited and the other a full tax obligation. The first situation, which we will focus on in this article, refers to employees with a fixed-term contract and those who live outside Denmark.

Denmark generates tax revenue through a combination of individual income taxes, corporate income taxes, social insurance taxes, taxes on goods and services, and property taxes. A smaller percentage of revenues comes from corporate income and gains taxes and property taxes compared to the general OECD trend. Meanwhile, the proportion stemming from payroll taxes, Value Added Tax (VAT), and other taxes on goods and services aligns with the OECD average. The income tax itself consists of state and city tax, as well as contributions to health insurance and contributions to the labour market. Looking at the issue in more detail, we can distinguish between direct and indirect taxes. Indirect taxes refer to the taxes and duties paid through the purchase of goods and services. Every time you purchase an item or use services like opening your water tap, you contribute indirect taxes to the state. In 2016, approximately one third of the total Danish tax revenue was derived from indirect taxes. The first category consists of:

• city tax;
• Church tax – a voluntary tax which amounts to approximately 0.92%. Around 75% of the Danish population, who are members of the Danish National Church, are obligated to contribute approximately 0.7% of their income. The magnitude of the church tax varies from municipality to municipality. Consequently, your total tax payment will be contingent on the municipality of your residence. If you are a member of another church or religious association and you make a contribution, it may be eligible for tax deductible.;
• pension contributions;
• employee contributions;
• health insurance contributions;
• Municipal tax, based on the taxable income at a flat rate determined by the specific municipality. Several significant deductions are available within the municipal tax system.
• tax on hiring foreign labour to work in the country (as amended on 29 January 2016, Act No. 117) – Danish companies employing foreigners are required to pay 38% tax (30% – for hiring labour and 8% – contribution to the Danish Employment Fund);
• Tax deducted from the source of income for natural persons and legal entities;
• tax not deducted from the source of income;
• state personal income tax
• property value tax – homeowners or apartment owners, based on public property valuation;
• Land tax or real estate tax (Ejendomsværdiskat) – when paying state tax value of property owned by the taxpayer is a factor in determining the amount of the tax. The burden is on all residents of Denmark, regardless of where the property is located. This means that foreign residents in Denmark are obliged to pay tax on their property, even if it is located in another country. Under current law, property worth DKK 3.04 million or less is taxed at, a rate of 1%. For property worth more than DKK 3.04 million, the rate is 3%;
• The motorized vehicle registration tax for private households amounts to more than 100% of the initial 100,000 DKK of the car dealer’s price, and 150% on the value exceeding approximately 100,000 DKK of the car dealer’s price for the vehicle. Commercial businesses and two-seater vehicles for private household use (without rear passenger seats) are subject to a reduced registration fee. An additional tax is mandated if commercial vehicles are utilized for private purposes. Failure to pay this tax while using the vehicle privately results in substantial penalties.
• a tax on the value of property that has been assessed at a public valuation.

The contributions and taxes mentioned belong to the category of so-called direct taxes. The second category consists of indirect taxes, which include:

• customs duty;
• excise duty;
• VAT;
• environmental taxes.

In the Danish tax system, a significant portion of revenue comes from taxes on personal income, while there are no revenues generated from social security contributions. This prudent tax policy helps reduce economic imbalances.

The tax year in Denmark is equivalent to a calendar or other year, but always 12 months. The filing of the tax return takes place a maximum of six months after the end of the tax year. At the same time, the taxpayer has, the right to appeal the decision of the office for the next 3 years. In practice, this means that if, for example, we fail to file our tax return by the set deadline and SKAT imposes a penalty, we may appeal the decision and settle accounts with the office.

Due to the classification of national taxes into bottom and top tax, progressive taxation is applied to personal income. If you run a business in Denmark, you are subject to either 22% of danish corporate tax rate, or 25% VAT. The first option applies to companies whose annual turnover does not exceed DKK 50,000. On the other hand, VAT will be paid by companies whose taxable income exceeds the DKK 50 thousand limit. In addition, for shareholders, the tax on income from shares is 27% when their income fluctuates between DKK 0 and 54 thousand. If they have an income higher than 54 thousand, the net capital income is taxed at a rate up to 42%. In addition, a company that exports goods and services does not pay VAT. However, before a company can take on its first orders, it must be registered with the regional Customs and Tax Administration through the Agency for Enterprise and Trade.

The legal acts where you can find more information on this are:
The Personal Income Tax Act – Personskatteloven;
Tax Inspection Act – Skattekontrolloven;
The Act on Withholding Tax – Kildeskatteloven;
Tax Assessment Act – Ligningsloven.

Danish tax law is quite complex at first sight. However, on becoming more familiar with the subject, it turns out that by choosing a particular tax „path” we have a precisely marked route. All we have to do is take the options that are appropriate to our situation.

Taxes from the company’s side

All persons residing and having an employment relationship in the country are subject to taxation in Denmark. In addition, the group of taxpayers includes: retired persons; students who receive state grants; unemployed persons who receive social benefits – from a-kasse (arbejdsløshedskasse); persons who work outside of Denmark, i.e. who live in the country but receive income from abroad; entrepreneurs who run their, own companies.

With respect, to entrepreneurs, the following types of economic activity can be distinguished:

Enkeltmandsvirksmhed – self-employed persons, i.e. a sole proprietorship – SKAT considers the income derived from such an activity as the owner’s income. As a result, business tax is charged, which is settled on a single tax return. Persons conducting such activities are entitled to health and pension benefits on an equal footing with employees;

Anpartsselskab – ApS – a limited liability company;

Kommanditselskab – K/S – Limited partnership;

Filial af udenlandsk selskab – branch of a foreign company;

Salgskontor – representative office of a foreign company;

Andelsforening/Brugsforening – cooperative association.

Every company operating in the Danish Kingdom must be registered with the Tax Authority (SKAT) before distributing goods or services. Thus, all types of companies, from sole proprietorship to private limited company in Denmark, are subject to corporate income tax (CIT), which is 22%. If the company’s annual profit exceeds DKK 50,000, the company will no longer pay CIT but VAT, which is 25%. The tax must be settled either once every six months or once every quarter. This can be done via the Danish Tax Authority’s website (www.skat.dk). In this context, there are two important dates that you should really take, into account. The first is 20th March, when the advance payment of income tax is calculated at a higher interest rate than in the bank so that we can receive a higher tax refund. Meanwhile, on 20th November, the interest rate is reduced by 0.4%, i.e. it is lower than in the bank, and thus also our tax refund.

Corporate taxation

Income tax in Denmark has to be settled by all companies operating in the country. The fiscal burden relates to the total income of the company, including both income from property and capital. Entrepreneurs have six months from the end of the tax year to file their returns.

The Danish tax system charges a 22% tax rate for legal entities. If the company is not resident in Denmark, tax is only charged on profits earned in Denmark. On the other hand, when the company is a Danish tax resident, income from Danish head offices is offset against the income of foreign subsidiaries, although it should be noted that foreign subsidiaries of Danish companies may be exempt from tax in Denmark. All Danish entrepreneurs also pay 22% tax on capital gains when these are included in company income. In addition, there is a mandatory environmental tax for energy supply companies. Companie are also charged 22% tax when the capital gain is derived from listed portfolio shares. However, if a Danish shareholder sells shares in companies, subsidiaries, group shares or unlisted portfolio shares, the gain is not taxed. The same applies to gains realized from the sale of a personal Danish shareholder’s shares.

VAT

In Denmark, the Value Added Tax (VAT) is typically enforced at a single rate and, with minimal exceptions, is not divided into multiple rates as observed in other nations (for instance, Germany), where reduced rates are applicable to essential items such as foodstuffs. The VAT rate is 25% and is primarily paid by entrepreneurs with an annual turnover of at least DKK 50,000, but also by ordinary employees. The difference is that to pay tax as an employee, you must be employed for a period of between 3 months and 3 years and earn more than DKK 47,500. The tax is then increased by an additional 9% contribution to the Danish labour market.

If you are a company, you have 8 days to register your company as a VAT payer, especially if you have employees. In order to do so, all you have to do is visit the website of the Register of Foreign Suppliers – virk.dk. Recipients of services are also obliged to register, even if they provide services to companies that are not registered for VAT. The entrepreneur then receives an individual SE number, which is assigned by SKAT to all registered companies. If the foreign company is not registered, the NIP is sufficient. It is worth knowing because foreign companies, even if they are not VAT payers in Denmark, are entitled to a VAT refund on taxable Danish costs.

In addition, the Danish legislation provides for solutions such as the reverse-charge procedure, which means that foreign companies that want to sell goods and services to Danish entrepreneurs can pass this obligation on to the recipients. In this case, only the net value of the service or goods is invoiced. The document should be marked with the formula reversed-charge and the CVR or SE-number, the registration number of the buyer, who from that moment on is obliged to calculate and pay VAT on the service or goods. This procedure applies to the following services: construction work, exhibitions, maintenance work and any repairs, entertainment, conferences, sports events, employee leasing and cleaning.

0% VAT applies primarily to services and goods exported. In contrast, activities relating to the distribution of goods and services within the country that are exempt from this tax are:
medical care;
funeral services;
insurance;
social benefits;
sports;
games;
passenger transport;
financial operations;
travel agency services;
arts and culture;
charitable activities;
real estate;
postal charges.

A different, but equally important, case is that of foreign seasonal and permanent employees. If they are employed by the owner of a Danish company, such an employee is also subject to tax liability, which, however, varies in detail depending on the person’s origin and length of stay in Denmark itself.

We also recommend reading our article on accounting in Denmark.

CIT

CIT is a corporate income tax, and amounts to 22%. It is levied on limited liability companies (also known as Ltd in Denmark), joint stock companies and all partnerships – in the latter case only the partners of the companies are taxed. The basis for CIT is the income of Danish entrepreneurs, including income from capital. Companies are taxed on a consolidated basis, which means that the tax applies not only to the parent company, but also to its branches and subsidiaries.

Excise tax

Concerning the excise duty, the system is partly regulated by European Union law, which guarantees a preferential duty rate of 0%. This right may be exercised by all citizens of member states. Products for which excise duty is the same for all EU countries include: electricity, spirits, wines (including fruit wines), beer, chocolate, liquefied petroleum gas, tea, coffee, chewing tobacco, cigarettes, snuff and pipe tobacco, car tyres, natural gas, confectionery, cigars, cigarillos and Hawaiian cigars, and cigarette papers. That may benefit from the preferential rate when transporting goods, you must have a EUR1 document, which is a certificate of origin for the products.

The amount of excise duty on goods that are not subject to the preferential rate is calculated on the basis, of the customs value of the goods: the price of the goods + insurance + transport cost. Articles falling into this group are:
tobacco products;
disposable packaging;
spirits;
beer;
wine;
ice cream;
coffee;
tea;
video cassettes;
chocolate products;
light bulbs;
cars;
fuels.

Tax-free amount

In 2020, in Denmark, taxpayers whose annual income did not exceed DKK 46,700 were exempt from income tax. Thus, only those who exceeded this threshold had to account for tax.

Danish tax thresholds

According to Danish regulations, taxpayers whose income is lower than DKK 50,217 are subject to an 8% rate on their income, while those whose income is higher, but at the same time do not exceed the threshold of DKK 558,043 – 39.2%. On the other hand, an annual income of DKK 558,043 is taxed at a rate, of 56.5% income tax.

Citizens of the European Union working in Denmark

The following story illustrates taxation from the perspective of an EU citizen working in Denmark. Consultant Peter from Germany finds an interesting position with a Danish end client through Right People Group, and applies to take part in a project. He gets the job and a six-month project that requires him to work full-time in Denmark. As agreed, consultant Peter will be paid on an hourly/daily basis, and his qualifications have been confirmed by the end client. Consultant Peter will work according to the terms agreed with Right People Group and the end client on site in Denmark. German consultant Peter must now pay Danish taxes from his first day of work – in accordance with international employment rules. If he keeps all his interests in his home country (such as place of registration, family, economic interests, etc., and only works in Denmark), he will only be subject to limited tax liability.

Taxes from the employee’s side

In Denmark, individuals are already liable for tax from the age of 15. The same also applies to younger citizens if they earn an income. In Denmark, if you are employed, your taxes are collected from each paycheck and transferred to the tax authorities. The tax return must be submitted no later than 1st July. In the event, that we have difficulty meeting the deadline, we can apply for a postponement. Regardless of whether the individual had no income during the year or whether the income was derived from gainful activity exclusively in Denmark, he or she is under an obligation to file a tax return, which in this case takes a simplified form. The filing deadline for such persons is 1st May. Married persons, on the other hand, shall submit their tax return separately.

There are 3 tax thresholds in the Danish state:
basic;
medium;
highest.

Each individual’s income is subject to a flat tax on individual income for the benefit of the municipality they live in – 32.6% on income. In addition, taxpayers also pay a progressive tax, which goes to the treasury – 5.64% on income (this applies to annual income equal to or greater than DKK 42,000, plus income from capital). 15% of the income will in turn be paid to the treasury by those whose earnings exceed DKK 42 thousand 100 (also increased by income from capital). State progressive tax is levied on both labour and capital income. At the same time, the sum of the fiscal burden charged on income by law cannot exceed 59%. Income from shares up to DKK 58,900 (DKK 117,800 for a married couple) in 2023 is taxed at 27%. Share income in excess of this amount is subject to a 42% tax rate. Both the employee and the employer have the obligation to pay labour market supplementary pension (ATP). In Denmark, it is widely acknowledged that the extensive benefits provided by the welfare system outweigh the high tax rates. Upon reaching retirement age, the welfare state offers citizens a substantial pension. In Denmark, the majority of employed individuals who pay taxes on their income through payroll are not obliged to file tax returns. Neglecting to adhere to the appropriate protocols and local tax legislation may result in individuals facing a range of penalties.

Income tax

Denmark has had two basic types of income tax since 1903’s. Progressive tax, which is paid to the state. Whereas, a flat tax is paid to a local authority such as the municipality. Distinct types of income are liable to different taxes, thus they are taxed at different rates accordingly.
The rates, applicable in 2020, were respectively:

• for income less than DKK 50 217 – 8%;
• for income between DKK 50,217 and 558,043 – 39.2%;
• for income equal to or higher than DKK 558,043 – 56.5%, a maximum tax rate.
• Every Danish taxpayer is required to register with the regional Customs and Tax
• Administration through the Agency for Enterprise and Trade.

What can be deducted from Danish income tax?

Employees working for a Danish company are entitled to a number, of reliefs, which can later be deducted from their tax and reimbursed in the annual tax return. All you need to do is to present the appropriate documents to SKAT, the Danish tax office, confirming your right to use the above-mentioned reliefs.

The three, so to speak, most basic allowances are related to the costs incurred by an employee of a Danish company in connection with work. The amount of each allowance is set each year by the Danish tax authorities. The first is granted for accommodation, and in 2020 was DKK 223 per day. It is specifically aimed at temporary employees.

 

The second relief is linked to food costs. In 2020, SKAT has granted up to DKK 521 per day for this purpose for each taxpayer. As in the case of accommodation, temporary workers are to be the main beneficiaries. At the same time, it is worth noting that the maximum reimbursement for board could not exceed DKK 28,600 throughout the year. All employees of Danish companies who incur financial costs for commuting to work are eligible for the next tax relief. The only condition set by the Danish office is the distance from the workplace. The allowance can be claimed if the round trip distance from the place of residence to the workplace is more than 24 km.

So both those who travel by car and those who travel by plane or ferry to work will be reimbursed. This way, if someone would like to commute from another EU country, the costs will be reimbursed. In 2020, the Danish authority reimbursed DKK 1.96 per 1 km, for distances between 25 km and 120 km round trip. However, if the round trip distance exceeded 120 km, SKAT reimbursed DKK 0.98 per 1 km.

Another spending is tax-deductible for crossing bridges. Here the principle is just as simple and not complicated. If the bridge crossing to work is paid, any employee of a Danish company will be able to claim a refund.

Meanwhile, the cross border tax credit is aimed at employees of Danish companies whose minimum 75% of annual income comes from Denmark and who cross the country’s borders to get to their place of employment. Married individuals should then include their spouse’s income in their joint annual tax return. According to the 2020 figures, the relief was granted if the spouse’s income did not exceed DKK 46,500 per tax year. As proof of entitlement to the relief, you need to provide:

• a marriage certificate translated by a sworn translator into Danish or English, preferably on an EU form;
• a certificate from the Tax Office stating your and your spouse’s income, translated by a sworn translator..

The refund amount in 2020 was DKK 16,000.

Another relief is granted for interest costs on consumer and mortgage loans. If an employee of a Danish company has taken out a loan and their annual income is at least 75% earned in Denmark, they can count on the relief. The documents that must be submitted in this case in the annual tax return are:

• a certificate from the bank stating: the details of the borrower, the amount of interest paid during the tax year, the type of loan, the name of the bank – the document should be translated into Danish or English by a sworn translator.

Married persons must also include their spouse’s income. If the situation involves a mortgage, 1% of the value of the property will also need to be added.

Finally, there is the relief of running a dual household. Any employee of a Danish company who provides a letter confirming the existence of a second household in the place of residence may become a beneficiary. In order, to qualify for the relief, you must have:

• a marriage certificate translated into Danish or English by a sworn translator, preferably on an EU form;
• a certificate from the municipality stating that you and your spouse have the same place of residence, translated into Danish or English by a sworn translator.

Denmark – tax refund

The Danish system provides for technological solutions in dealing with official matters. It is the easiest and fastest way to submit tax returns or other documents. Just go to www.skat.dk, which is the official domain of SKAT.

The annual settlement of income tax by electronic means is possible if the user has a unique TastSelv-kode, which consists of eight digits. The code is necessary for logging in to the website, as in addition to its identification function for the entrepreneur, it also acts as a password to the system and allows access to personal tax information.

At the Danish Citizens Service Office (Folkeregistret), as well as the Foreigners Service Offices located in Odessa, Copenhagen, Aarhus and Alborg, you can apply for a tax identification number, or CRP – Central Person Register. Of course, you have to be a Danish taxpayer, i.e. either work for a Danish company or have a business registered in Denmark, in order for the number to be issued. CRP entitles you to free medical care and health insurance. In order, to obtain a tax identification number, you must provide:

• proof of identity;
• your tenancy agreement;
• your employment contracts.

Documents and deadlines

LONSEDDEL – weekly or monthly payslips.

OPLYSNINGSSEDDEL – this document summarizes an employee’s earnings. Every employer is obliged to issue this form to all employed workers.

SELVANGICELSE – tax-return form issued by SKAT. The Danish tax office sends it to the address you provide when you register as a taxpayer.

ÅRSOPGØRELSE – the tax decision that is sent out by SKAT after 2 July.

A great solution for foreign entrepreneurs is a virtual office service. It allows you to get a Danish address without having to stay in Denmark. This allows you to do business in the country and at the same time maintain great flexibility.

In summary, Denmark provides a favorable tax environment with a corporate tax rate below the OECD average and attractive tax rules for immigrants, so it is worth considering when planning to open your business.

FAQ

1. How to determine tax residency in Denmark?
   Everyone who stays in Denmark for more than half a year and persons who decided to settle permanently will be considered as tax residents in Denmark. Individuals residing in Denmark are accountable for complete tax liability, meaning they are obligated to pay taxes on their worldwide income, unless they are recognized as tax residents in another country according to a Double Taxation Treaty (DTT). According to Danish law, the tax liability of Danish entrepreneurs and employees is linked to tax residence.
2. Who is entitled to a full tax refund in Denmark?
   Individuals whose annual income does not exceed DKK 42,900 are exempt from tax.
3. By when can I submit my tax return in Denmark?
   Annual tax returns must be submitted to the tax office by 1st May or 1st July.
4. Who has to settle with SKAT?
   Every employee of a Danish company must file a tax return with the Danish Tax Agency. The penalty for not doing so is DKK 5,000.
5. How much time do I have to file a tax return and a correction to my tax return in Denmark?
   Danish legislation allows for a period of up to 3 years and 4 months for the submission of a tax return, a correction of the tax return or an appeal against a decision of the Danish tax authorities.
6. Who is subject to limited tax liability in Denmark?
   All persons working in Denmark but not residing there are subject to limited tax liability. This means that tax is only payable on income earned in Denmark.
7. What is Personfradrag?
   Personfradrag is a personal tax allowance. All Danish tax residents who have worked in Denmark for 12 months are entitled to this tax relief.
8. What is NemID and Tastselv?
   NemID and Tastselv are unique codes assigned to individual tax residents. These codes are required when filing your annual tax return in Denmark. You can order these codes through the tax office’s website – www.skat.dk.
9. What is a NemKonto?It is an employee bank account to which your tax refund and salary from your employer will be transferred after your application has been processed.
10. What is eiendomsværdiskat?
    Eiendomsværdiskat is a property tax for the state. This obligation covers all the taxpayer’s property, regardless of where it is located. So if you are foreign and also a Danish tax resident and own property in your home country, you are subject to this obligation. The interest rate for real estate with a value of less than DKK 3.04 million is 1% per year, while above this value it is 3% per year.
    Reductions and exemptions from cadastral (real estate) tax:
    • people over 65 are entitled to a 0.4% reduction in the income tax rate. If this applies to a holiday home, the reduction is no more than DKK 2,000. For year-round houses, on the other hand, the relief increases to DKK 6,000. If the property is jointly owned, it is sufficient that one of the co-owners is over 65. Persons before this age limit whose deceased spouse is over 65 will retain the relief previously granted;
    • moving – this is another reason to be exempt from this fiscal burden. The tax-free period is within a few months – between the purchase and the move. An extension of this period involves a tax surcharge from the time of signing the contract of sale of the property. The tax exemption also applies to persons who have moved out of the property before the sale;
    • destruction of the real estate by forces beyond the taxpayer’s control is eligible for tax exemption. However, it is a discretionary exemption, so if according to the officials the property is still habitable, you will not get the relief;
    • the tax is paid in another country – then you may be exempt from paying tax in Denmark. You only need to present proof of payment to the Danish authorities;
    • if you fully or partly rent out your property, you may be fully or partly exempt from tax. However, you will then be subject to the higher rental tax;
    • for real estate purchased before 1 July 1998, the tax can be reduced by 0.2%;
    • if you use the property all year round, the rate may be reduced by 0.4% (up to a maximum of DKK 1 200).
11. What is eiendomsskat (Municipal Property Tax)?
    It is a tax on the value of land. In practice, this means that the base value of the land is taxed at the total value of the property less the value of the improvements, or at the value of the properties for the last tax year, modified by a percentage of decrease or increase. Proceeds from the sale of one’s own home are not taxed because the marginal rate on capital gains (friværdi) from housing savings is approximately 0%. Property tax ejendomsskat is paid to the Danish municipalities twice a year.
12. What does Skat til udbetaling mean?
    This formula appears on the tax notice you receive from the authorities and indicates the amount of refund you have received from the Danish Tax Agency.
13. What does Restskat til betaling mean?
    This formula appears on the tax notice you receive from the Danish Tax Agency and indicates the amount of surcharge you have to pay to the Danish Tax Agency.
14. What is Forskudsopgorelse and Selvangivelse?
    Forskudsopgorelse and Selvangivelse are tax cards that contain the TastSelv number you need to submit your annual tax return electronically.
15. What is Feriepenge, and who is entitled to it?
    Feriepenge is a holiday benefit. All legally employed persons are entitled to Feriepenge. A Danish worker is entitled to 2.08 days’ holiday for every month worked, i.e. 5 weeks, but a minimum of 3 weeks of the 5 weeks’ holiday must be taken during the Danish summer holiday period (between May 1st and September 30th). You can still apply for holiday pay after you have finished working for six months. You only have to register with Folkeregister before you leave the country. The benefits for the previous tax year are paid into NemKonto within 3 months. You will only be able to take advantage of your Feriepenge from 1 May until 30 April.
16. What is a Personnummer?
    Personnummer is a tax identification number – CRP – that the taxpayer receives through SKAT. This number is needed for income tax and VAT settlements.
17. What is Sundhedsbidrag?
    These are health insurance contributions that were abolished in 2019.
18. What is Arbejdmarkedsbidrag (AM-bidrag)?AM-bidrag is contributions to the Danish labour fund. It amounts to 8% and is levied before any other taxes are levied on all income from either self-employment or employment. This tax is referred to as gross tax.
19. What is Skattestyrelsen?
    Skattestyrelsen is the equivalent of the Tax Authority in Denmark.
20. What is Skatteminister?
    Skatteminister is the Danish Ministry of Taxation.
21. What is Skatteloft?
    Skatteloft refers to the combined total of municipal and national taxes (the marginal tax rate), which cannot surpass 52.07 % – also called tax ceiling. Several deductions are applicable, resulting in a lower effective tax rate in the majority of cases. The Danish Ministry of Taxation has released an updated tax rate schedule spanning from 2018 to 2023. In 2023, the lower and upper state personal income tax rates remain at 12.09% and 15.0%, respectively. The maximum tax rate cap remains at 52.07%, encompassing state, municipal, and specific other taxes. Additionally, the corporate tax rate is retained at 22%.
22. What is Pillar Two?
    The global minimum tax agreement, commonly referred to as Pillar Two, aims to mitigate profit shifting.