Income taxation when working in Denmark is usually very high and the income taxes are probably not found higher in any other country.
Taxation when working in Denmark.
Income taxation when working in Denmark is usually very high and the income taxes are probably not found higher in any other country. Individuals permanently living in Denmark suffer from this. However, individuals working on a temporary basis in Denmark have options to reduce the taxation significantly. Expats need to know the tax planning options in order to benefit from them. Significant tax savings can be obtained when tax planning advice is made before arrival in Denmark.
The social contribution costs for the employer in Denmark is with no doubt the lowest in Europe.
The combination of high income tax rates on salary and the low social contributions for the employer is very important to understand for an expat considering working in Denmark. This combination implies that a very high salary level can be obtained in Denmark, since the employee can argue that taxes are high and that he therefore needs to focus on the net salary after income taxes putting pressure on the salary level. The employer normally accepts this since the total cost for the employer equals the salary package since only very small employer social contribution costs are added which is very unusual in Europe.
You are able to find a lot of info on our sites on taxation in Denmark and general taxation information.
However in order to have individual tailored substantial tax savings you need to buy tax advice and assistance.
We should be glad to prepare a tax savings plan for you. Danish tax rules are complicated and just as hard to understand as the Danish language. You can find a lot of info on tax issues on the web also in English, but professional advice must be paid for. We are professional tax advisors and we demand fees. However please understand that a fee paid for a valuable tax advice is a very good investment.
Please contact us on firstname.lastname@example.org if you are considering working in Denmark.
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