Taxes in Denmark!

If you planning to immigrate to Denmark or have previously completed the procedure of immigration and soon you are flying to calm down in the country, you are instructed to be acquainted with a few things regarding the country’s labor market and the tax structure. Similar to several countries, the tax system of Denmark has many rules and laws.

To start off, SKAT is the power in Denmark in charge for collecting taxes. All citizens earning from their service in the country are entitled to give tax. Though, the quantity of tax payable is determined taking the salary and allowances a person gets into thought. Usually, an individual is required to pay eight percent in labor market contributions of all of his earnings. This 8% is subtracted previous to other tax is calculated. The employer takes away the tax and the labor market contributions from an employee’s earnings. The income tax return is then received by en worker by the end of the year, followed by the yearly tax statement issued by SKAT. In brief, in Denmark, individuals free to pay tax, have to pay labor market contributions and provisional tax each time when they take delivery of their salary.

Below are the people entitled to pay Danish income tax, who;

• Run businesses

• Unemployed, but receive money from the state/unemployment funds

• Students who receive educational grants

• Senior citizens who receive national pension

• People living in Denmark, but work abroad and receive an income from broad

As previously mentioned, the tax rates for all individuals are not the same in Denmark. Higher the income, higher the quantity and proportion of tax an individual is entitled to pay. To know further about Denmark immigration related issues, keep visiting this blog!