Tax

The Danish society is a welfare society and is based on the concept of citizens having equal access to different services paid for by taxes. This includes services such as health care, childcare and education. Taxes are administered by the Danish tax authorities, SKAT.

The tax rates in Denmark are generally known to be high but it is less known that social security is financed by taxes. Furthermore, everyone has access to the same public services regardless of income and employment.

As a rule of thumb, if you live in Denmark, you are fully tax liable in Denmark. Your global income shall therefore be declared and taxed in Denmark. 

As a non-Danish researcher, there are different ways in which you can be taxed in Denmark; please read below.  

 

 

 

If you are employed at the University of Copenhagen as a Postdoc, Assistant Professor, Associate Professor or Professor, you may be eligible for the researcher tax scheme. It entails a flat rate tax of currently 32.84 percent for a period of 84 months. The researcher tax consists of an 8% labour market contribution and 27 % tax. The 27 % tax is calculated after the deduction of the 8 % labour market contribution. 

The researcher tax scheme only applies to salary from the University of Copenhagen. Other income will be taxed according to the regular tax rules. If you do have other income, you will have the same liabilities as described above under the Regular Danish tax scheme.

Requirements
In order to be covered by the flat rate tax of 32.84%, it is a requirement that you are hired in a post doc position or above and that you have not been tax liable to Denmark 10 years prior to your employment at the University of Copenhagen.

  • IMPORTANT NOTICE: This also means that if your entry date to Denmark is more than one month prior to the beginning of your employment, you will not be eligible for the researcher taxation. Furthermore, if you have a gap in your employment of more than one month and keep your address in Denmark, you may not be eligible to continue on the researcher taxation. 

Procedure
Researcher taxation needs to be approved by both the University and SKAT. In order to apply for the researcher tax, you must follow these steps:

  • Register with the civil registration office and obtain a CPR number.
  • Fill in the University’s special researcher taxation form (you will receive a link with the employment offer from the University).
  • The university will send your application to the tax authorities, which will confirm registration after a handling time of up to two months. The University is allowed to tax you according to the researcher taxation already when the application has been sent.

No tax card is needed for individuals covered by the researcher tax scheme with no other income or assets that is taxable in Denmark.