Tax card

Tax is withheld on every disbursement of pay, pension etc. made to persons liable to pay tax in Denmark.

All taxpayers have a Danish civil registration number, a preliminary income assessment and an Tax card at Skattestyrlesens self-service system - E-tax for individuals.

Persons with limited tax liability are given a so-called personal tax number.

The preliminary income assessment shows your expected income and allowances/deductions as well as total calculated tax, including labour market contributions of 8%. For employees, pensioners etc., the preliminary income assessment also shows a withholding rate and a monthly allowance. These two pieces of information are collectively referred to as an tax card. A monthly allowance is an amount on which you do not have to pay tax. This means that the monthly allowance is deducted from your pay after labour market contributions and before tax is calculated on the basis of the withholding rate. The withholding rate is the percentage payable in A-tax after the allowance has been deducted from your pay. Your total tax is the sum of the labour market contributions of 8% and the calculated A-tax.

Self-employed persons receive a preliminary income assessment stating the tax they have to pay on an ongoing basis throughout the year. As for employees, the total tax to be paid comprises labour market contributions of 8% and calculated tax. This total B-tax is divided into ten portions to be paid in the months of January to May and July to November.

The Danish fiscal year follows the calendar year. In other words, your tax is calculated on the income you have had during a calendar year. In the course of the year, the income tax is withheld by the employer/whoever disburses the pay. The tax withheld will be paid to Danish Tax Agency as provisional tax.

How to apply for a personal tax number and an tax card

When you have a signed employment contract or must have the payment of pension etc. You must apply for a non-resident identification number and tax card.

You can submit via a digital application or by filling out form 04,063 which you send to Danish tax agency along with a copy of your passport and your contract from your employer. If you do not have a passport, you can send a copy of your identification documents.

You should be aware that an agreement relating to an association with a temporary work agency in this regard is not considered a contract of employment. As a temporary worker you will first get a non-resident identification number and tax card when you specifically start a job for the temporary employment agency and can send a copy of a work note to Danish tax agency.

The type of documentation required when you wish to apply for a personal tax number and an E-tax card for the first time depends on where you come from:

Citizens from the Nordic countries

Citizens from other EU/EEA countries and Switzerland

Citizens from non-EU/EEA countries

Your E-tax card will be available once you have received a Danish personal tax number and a preliminary income assessment. Your employer or whoever makes the disbursement must obtain the E-tax card electronically from Skattestyrelsen.

Cessation of tax liability in Denmark

If your tax liability in Denmark ceases, you must inform Skattestyrelsen of the date of cessation by phone or email.

Payroll withholding tax on work performed in another Nordic country, and transfer of tax (the Nordic treaty on payment and transfer of tax)

If you work for an employer in your country of residence but are going to perform work in another Nordic country, you or your employer must submit either form NT 1 or form NT 2 to the tax office where your employer is resident. This will ensure that your tax is deducted in the correct country. If you are liable to tax in your country of residence (i.e. if you stay for less than 183 days in the country of work), you should complete form NT 1. If you are liable to tax in the country of work, you should complete form NT 2. This applies if you stay there for more than 183 days, if your employer has a permanent establishment there, and (in some countries) if you are hired-out personnel.

In certain cases the Nordic treaty on payment and transfer of tax allows the tax authorities to transfer tax between countries. If tax has been withheld from your income from employment in one Nordic country and the same income proves to be taxable in another Nordic country, the tax that has been withheld can be transferred to the country in which the tax is payable. Any tax transferred pursuant to this treaty is always deemed to have been paid on time, so you will not be charged interest etc. on the amount transferred. However, if the amount paid is insufficient to cover the tax payable to the other country, you yourself will have to pay the excess tax, plus any interest due on that amount.