During 2012, a number of tax law changes took place, and some of the changes will take effect over the years to come. Changes to tax rates, tax bands, and deductions for individuals are part of these changes.
Deductions for employees
The employment allowance is raised to a maximum of 33,300 Danish kroner (DKK) (2018). This allowance is to be raised over the years to come as well.
From 2018, a so far temporary rule has been made permanent: Certain approved expenses regarding household services may be deducted. The deduction is capped at DKK 6,000 (2018) per individual. Additionally, a deduction for the use of craftsmen for certain types of services (primarily environmental improvements on the home, and a few other types of services) is applicable. The deduction is capped at DKK 12,000 (2018) per person.
Special expatriate tax regime for foreign specialists, researchers, etc.
The government and a sufficient number of votes from other parties have, in November 2017, agreed to extend the maximum period in the special expatriate tax regime for foreign specialists, researchers, etc. from 60 months to 84 months and to increase the tax rate from 26% to 27% with effect from 1 January 2018. A bill was introduced in the Parliament and was passed on 19 December 2017.