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DK Tax 2023

iCalculator™ DK: Denmark Tax Calculators

Welcome to iCalculator™ DK, your comprehensive suite of free tax calculators for Denmark. iCalculator™ has provided free tax calculators for Denmark since 2014. Since those early days we have extended our resources for Denmark to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Denmark Tax Calculator and salary calculators within our Denmark tax section are based on the latest tax rates published by the Tax Administration in Denmark. In this dedicated Tax Portal for Denmark you can access:

Denmark Tax Calculator 2023/24

The Denmark Tax Calculator below is for the 2023 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Denmark. This includes calculations for

  1. Employees in Denmark to calculate their annual salary after tax.
  2. Employers to calculate their cost of employment for their employees in Denmark.
Denmark Tax Calculator 2023
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Denmark is known for its comprehensive welfare system and high level of public services, which are supported by its progressive and well-structured tax system. As a resident or company operating within Denmark, understanding the variety of taxes and compliance requirements is essential for proper financial planning and legal conformity.

Personal Income Tax

In Denmark, personal income tax is levied on an individual's total worldwide income, which includes earnings from employment, business activities, and certain capital gains. It is a progressive tax system where the rates escalate with income.

Corporate Income Tax

Companies registered in Denmark are subject to corporate income tax on their profits. This includes income from business operations, capital gains on shares, and income from property.

VAT (Value-Added Tax)

VAT in Denmark is charged on most goods and services provided by registered businesses. As part of the EU, Denmark follows the European VAT Directive with a standard rate applied to all taxable supplies, and a reduced rate for certain goods and services.

Excise Duties

Denmark imposes excise duties on a variety of goods such as alcohol, tobacco, and sugary products. These taxes are typically included in the price of the goods.

Property Tax

Property owners in Denmark are subject to property tax, which is based on the property value. The tax is levied by local municipalities and varies depending on the location and valuation of the property.

Environmental Taxes

Reflecting its commitment to sustainability, Denmark has implemented environmental taxes aimed at reducing the environmental impact of certain products or services. These include taxes on energy consumption, pollution, and the use of natural resources.

Inheritance and Gift Tax

Denmark also levies taxes on inheritance and certain gifts. The tax rate depends on the relationship between the donor and the beneficiary, with closer relatives typically taxed at lower rates.

Tax Compliance and Filing Requirements

Tax compliance is a crucial aspect of living and doing business in Denmark. Individuals and companies must ensure timely and accurate filing of tax returns.

For individuals, the tax year is the calendar year, and taxpayers must file their annual tax return by the deadline set by the Danish tax authorities. The tax assessment notice summarizing the year's taxes is usually received the following year.

Companies are required to file annual tax returns and pay corporate taxes by a specified deadline each year. VAT-registered businesses must also submit periodic VAT returns and payments.

To facilitate compliance, Denmark has a highly digitalized system for tax filing and payments, and most taxpayers can complete their obligations online through the official portal provided by the Danish tax authorities.

The Danish tax system is multifaceted, encompassing various forms of taxes with an emphasis on both direct and indirect taxation. While it may seem complex, the system is underpinned by a robust digital infrastructure that simplifies compliance. For iCalculator™ DK users, understanding these basics of taxation in Denmark is the first step towards ensuring informed financial decisions and adherence to local tax regulations.