Personal tax deduction
- All taxpayers have a personal tax deduction. This means you do not have to pay taxes on all the money you earn. The personal deduction is adjusted once a year following some very special rules. In 2019 personal tax deduction DKK 46.200 yearly.
- Other tax deductions and allowances (Andre fradrag) Certain deductions and allowances are only granted if you have certain expenses.
Withholding rate (Trækprocent) Withholding rate for students about 38%
- Your withholding rate corresponds to the percentage of your income that you must pay
in tax. The withholding rate is stated on your preliminary income assessment. The overall withholding rate consists of:
• municipal tax
• state tax
• church tax (if you are a member of the Evangelical Lutheran Church in Denmark)
• bottom-bracket tax
• top-tax (for persons with a personal income that exceeds DKK 498,900)
Labour market supplementary pensionfund 8% (Arbejdsmarkedets tillægspension)
- The labour market supplementary pension fund is a pension scheme to which all employees contribute from the age of 16 until retirement. If you receive daily benefits in the case of unemployment, sickness or maternity/paternity leave (dagpenge), social assistance benefits and certain other social pensions, you must also contribute to the labour market supplementary pension fund. Each time your employer calculates your pay, he/she withholds an amount for your labour market supplementary pension fund savings. Your employer also pays towards your savings, and when you pay 1/3, your employer pays 2/3. You will receive your labour market supplementary pension along with you ordinary pension when you retire.
Tax assessment notice (Årsopgørelse)
- Your tax assessment notice is available by mid-March in E-tax at skat.dk/english.
The tax assessment notice contains the information which The Danish Tax Agency
holds about your income and deductions and allowances for the year that has just ended.
- your pay
- your interest income and interest expenses
- membership fees to unions and unemployment funds
- information about your property/properties for calculation of property tax, etc.
- Additionally, you need to enter any missing figures and correct any incorrect figures. After you have done so, you will receive an updated tax assessment notice.
The tax assessment notice tells you whether:
- you have paid the correct amount of tax in the year that just ended
- you have paid too much tax and is entitled to a refund
- you have paid too little tax and must pay outstanding tax
- If you have paid too little tax, you need to pay the rest of the tax you should have paid.
- If you have paid too much, the amount of overpaid tax will be refunded to your bank account automatically.
- If you have any further questions, contact us.
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