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
If you are a foreign expert or researcher, you may be entitled to pay personal tax of 25%.
Individuals are subject to unlimited Danish taxation their permanent address is in Denmark or if they stay in Denmark for a consecutive period of 6 months or more.
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 30%. 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.
