DTA Income Tax Brackets in Denmark for 2024

Denmark is seen as the #1 country in Europe for ease of doing business, with a favorable tax climate, a low corporate tax rate, and attractive tax rules for expats. The tax system in Denmark is administered by the official tax body, the Danish Tax Agency (Skattestyrelsen).

The Danish Tax Assessment Act (Ligningsloven) provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these income tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with Danish tax laws.

Here you will learn about:

• headline tax rates
• personal income tax (PIT) rates 
• corporate income tax (CIT) rates 
• capital gains tax (CGT) rates 
• withholding tax rates
• value-added tax (VAT) rates 

Headline Tax Rates in Denmark

Personal Income Tax (PIT) Brackets for Individuals in Denmark for 2024

An individual may be taxed in several ways in Denmark, that is, with full tax liability, with limited tax liability, or according to special rules that may apply in expatriate situations or in respect of the workforce hire scheme. While an individual’s net capital income is taxed at a rate of up to 42%, the marginal tax rate cannot exceed 52.07% when considering combined PIT taxes. National taxes are categorized as bottom tax or top tax as outlined below.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Denmark for 2024

Companies in Denmark are subject to tax on all income.

Hydrocarbon Corporate Income Tax Rates

The ordinary corporate income tax (CIT) rate does not apply to Danish oil and gas upstream activities. Instead, there are two ring-fenced taxes (that is, the dedication of revenue from a specific tax for a particular purpose). A special income tax labelled ‘hydrocarbon tax’ is levied on profits from the exploration and extraction of oil and gas.

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Denmark

Capital Gains Tax for individuals is subject to the normal personal income tax (PIT) rates. Similarly, CGT for corporations is subject to the normal corporate income tax (CIT) rates in Denmark. 

Withholding Tax Rates for Residents and Non-Residents in Denmark

In general, withholding tax applies in Denmark to both residents and non-residents. There are several categories of tax applicable based on varying types of payments.

As Denmark has entered into several double taxation treaties (DTTs), tax rates may vary and a taxpayer may benefit from the provisions of these DTTs.

Value-Added Tax Rates in Denmark