New government in Denmark – changes to tax

A new government means new tax reforms

After the 2022 election three parties have emerged to form a majority government, and the basis of government has already been presented. 

There are, naturally, several points regarding tax, which we will summarise here. When the legislation is finalised the technicality of the points presented here might be subject to change.

First we note that no new tax can be levied unless other taxes are removed or lowered – this effectively means a halt to any increase in taxes. If the taxes on business should increase nonetheless, the funds are to be funnelled back as subsidies. 

We look forward to follow the actual implementation of the intentions and will make sure to monitor the changes closely.

Tax items in the basis for the new government

Tax reform on salary taxation

  • There will be an increase on employment deduction (“Beskæftigelsesfradrag”)
  • There will be an increase on employment deduction for sole providers
  • There will be a decrease in the current top tier tax by 7,5% (to 7,5%) for income up to DKK 750.000 before deduction of Labour Market Contribution (it is currently a 15 % taxation on income above DKK 618.370 before deduction of Labour Market Contribution)
  • A 15 % top tier taxation of income above DKK 750.000 before deduction of Labour Market Contribution will be maintained
  • A special top-top tier taxation of 5 % for income above DKK 2.500.000 before deduction of Labour Market Contribution will be added

International taxation

Efforts will be introduced to:

  • Ensure effective and fair corporate taxation internationally
  • Counter usage of money laundry and tax heavens
  • Effectuate the global agreement on minimum taxation on large multinational enterprises (current corporate tax level in Denmark: 22%) – including efforts to increase a fair taxation of global tech corporations

Other items

  • The current senior solution (“SeniorJobOrdningen”) will be replaced with a new integrated retirement solution
  • The intended warehouse taxation on properties will be abolished
  • The courts and the tax authorities will receive more funds to ensure stability

Sources and links

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United Tax Network - Denmark is now Crossbord

The world is changing and so are we.

Our services are not limited to international tax, so we have changed our name to Crossbord, which better reflects all of how we can help you: 

We are your partner in all your global mobility situations where you cross the border in or out of Denmark.