Denmark

Individual - Significant developments

Last reviewed - 02 June 2020

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.

Extended tax return filing deadline for income year 2019

The Danish Minister for Taxation has on 31 March 2020 decided that due to COVID-19 the Danish tax return filing deadline for the income year 2019 shall be extended. The extended tax return filing deadline for the income year 2019 is 1 September 2020. The extended Danish tax return filing deadline applies to all individuals who are liable for submitting a Danish tax return for income year 2019.

Deductions for employees

The employment allowance is raised to a maximum of 39,400 Danish kroner (DKK) (2020). This allowance is to be raised over the years to come as well.

Service expenses

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 6,200 (2020) 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 12,500 (2020) 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.