Denmark

Individual - Significant developments

Last reviewed - 21 February 2022

Deductions for employees

The employment allowance is raised to a maximum of 41,600 Danish kroner (DKK) (2022). This allowance is to be raised over the years to come as well.

Service expenses

Certain approved expenses regarding household services may be deducted. The deduction is capped at DKK 6,400 in 2022 (DKK 25,000 in 2021) per individual. Additionally, a deduction for the use of craftsmen for certain types of services may be applicable. The deduction is capped at DKK 12,900 in 2022 (DKK 25,000 in 2021) per person. The deduction for the use of craftsmen is expected to be abolished on 1 April 2022.

The deductible value for both the use of craftsmen and household service deduction are around 25.6%.

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.