Income tax is levied during the year
The way income tax is levied during the year is that the employer withholds part of the salary for tax and social security contributions before paying out the net salary. The employer can do this on the basis of the tax card. Anyone who is under a liability to pay tax in Denmark has to have a tax card.
The tax amount withheld by the employer is paid to the tax authorities as a preliminary tax. When the calendar year ends, calculations will show if the amount paid corresponds to the tax payable for the year.
The tax calculation for the calendar year is based on an income tax return and appears from an assessment notice.