Other Taxes on Income

Information about other taxes and contributions on income in Denmark…

In Denmark capital income is made up of taxable capital gain, interest income and expenditure, some share dividends and gains on shares. It is taxable and therefore included in taxable income.

Labour Market Contributions

All employees, including those who are self-employed must pay labour market contributions as well as income tax. They are payable on earnings, but not on pensions, most benefits or student grants. These contributions are a social contribution and are used to fund unemployment benefits, early retirement, further training and leaves of absence. They are collected by employers on an ongoing basis.

Special Pensions Savings

All working taxpayers between the ages of 17 and 67 must pay special pensions savings, which is automatically deducted from an employee's pay packet.

Inheritance Tax

In Denmark inheritance tax is payable if the deceased was resident in Denmark when they died. A tax of 15 percent is paid on the value of the deceased's estate above a defined value.

Up to 36.25 percent is payable by any beneficiaries who are neither immediate family nor have a closely defined relationship with the deceased.

There are some exceptions to these rules including inheriting from a spouse, property and beneficiary trusts, low value estates and pensions to children and stepchildren under the age of 24.

  • For information on inheritance tax in Denmark from the Confédération Fiscale Européenne: Click here

Gift Tax

Gift tax is applied in Denmark if either the donor or the recipient of a gift is resident in the country, or if the gift is real estate or property connected with a permanent establishment there.

When a gift is made to someone who is not a relative, it is taxed as personal income for the recipient.

Gifts to some close relatives, including children are subject to a 15 percent gift tax. Gifts between spouses are exempt from taxation, as are those to children and close relatives up to a certain value (DKK 58,700 in 2010).

Further Information

 

Disclaimer

Any statements concerning taxation are based upon our understanding of current taxation laws and practices in Denmark which are subject to change. While every effort has been made to offer information that is current, correct and clearly expressed the publisher is not responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. Readers are encouraged to seek professional advice concerning specific matters before making any decision.