ECOVIS Ringsted

Taxinformation

Income tax

Tax liability

Any resident of Denmark, as well as people staying in Denmark for more than six months, is fully liable to taxation in Denmark. That means that one is liable to taxation in Denmark of ones entire income, regardless of whether the income is earned in Denmark or abroad.

If one lives abroad, but works in Denmark, one is liable to taxation in Denmark of ones salary income (limited tax liability).

People residing in Denmark pay various kinds of tax:

• Direct tax on personal income
  
• Indirect tax, e.g. VAT and duties on goods and services
  
• Property tax
  
• Church tax, members of the state church only
  

Denmark has a graduated taxation. That means that the more one earns, the more tax one pays. There is, however, a tax ceiling of 59% of ones income to state, county and municipality.

For more information on the graduated taxation see the leaflet Preliminary Income Assessment 2006 at Central Tax Administrations homepage.
Along with the other Scandinavian countries, Denmark is one of the countries in Europe with the highest taxes and duties (cf. the figure).