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Denmark: Personal Taxation

Introduction

An individual is considered a resident for tax purposes in Denmark if they have their principal home in the country and reside there for more than 6 months of the year. Residents are liable for tax on worldwide income, with the exception of income earned in a country with a double tax treaty. Non-residents are liable for tax on income derived from Denmark.

All income from employment or self-employment has an 8% social contribution deducted before income tax is calculated. For wages below DKK 42,900, no further income taxes are due. For wages between DKK 42,900 and DKK 389,900, an additional 31.76%-36.76% is due, and for wages over DKK 389,900, an additional 43%-43.5% is due.

Dividends are subject to withholding tax at a rate of 15%-27%, while interest is subject to a rate of 0%-25%, and royalties are subject to a rate of 0%-25%.

 

 

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