Generally speaking all types of income are taxable both money and payments in kind (fringe)
Taxable income includes:
- Personal income, including earned income and pension income, remunerations, income from letting out property etc.
- Income from capital, e.g. interest income from bank accounts
- Equity income is taxed according to special rules and is not directly included in the personal income or the income from capital
- Employee benefits that may be equated with salary
Employee benefits are taxed because they are of financial benefit to you as an individual. Employee benefits are either fully or partially paid for by the employer. The taxable value of the employee benefit will be determined on the basis of tax rates set by the state or on the basis of ordinary market value. If the employee pays a certain amount to the employer for placing the employee benefit at his disposal, this amount can be deducted from the value of the employee benefit. Employee benefits are only taxed if the total value of these benefits exceeds a minimum level of DKK 5.000.
There are, however, a number of employee benefits that are always taxed and which should therefore not be included when deciding if the de minimum level has been exceeded.
These benefits include:
- Free car: If you are provided with a company car, which you may also use in your spare time, you will be taxed on the private use of the car. You will be taxed on 25% of the cars value up to DKK 300.000 and on 20% on any value exceeding DKK 300.000. The value of the car is estimated to be no less than DKK 160.000
- Free telephone: If the employer covers your expenses in connection with a home telephone, mobile phone etc. (subscription and calls), you will be taxed on the value of the free phone. The value is set at DKK 2,800, but not exceeding the employers expenses
- Free lodging: If the employer provides you with lodging fully or partially, you must pay income tax on this benefit if the rent you pay is lower than the market rent
- Free yacht
- Free radio and TV licence
- Free board and lodging
- Employee loans
- Gifts: Generally speaking gifts are considered personal income of the receiver. This does, however, not apply to occasional gifts of minor value.