Tax
Worldwide income, high progressive rates and 25% VAT
Residents are taxed on worldwide income through combined state and municipal taxes at some of the world's highest rates, administered by the Danish Tax Agency. VAT (moms) is a flat 25%.
Key rules
- Income tax combines state and municipal components, capped by a tax ceiling.
- VAT (moms) is 25% with very few reduced rates.
- A special expat researcher scheme offers a lower flat rate for a limited period.
Governing law
- Tax Assessment Act (Ligningsloven)
- VAT Act (Momsloven)
Penalties and consequences
- Surcharges and interest for late payment; criminal liability for evasion
In practice
The researcher/expat scheme is a key planning point for inbound skilled workers, offering a flat rate for up to seven years.