Hello everyone.
I was looking at the wikipage here http://en.wikipedia.org/wiki/Taxation_in_Denmark to get a grasp of the taxation system in Denmark.
I just have a few questions.
Income below DKK 42,900 (USD 7,600) (2010-level, adjusted annually) is tax exempt (except from the gross tax).[1]
The income tax can be broken down like this:
Social contribution (Gross tax) - 8%
Over DKK 42,900:
Municipal tax - 23% - 28%
Health tax (Region tax) - 8%
Base state tax - 3.76%
Over DKK 389,900:
Top state tax - 15%
Does that mean if my monthly salary is less than DKK 42,000, I wouldn't have to pay municipal tax, health tax, and base state tax?
But here it says differently
Danish tax examples as of 2010:
If you have what is considered a very low income (DKK 150,000, USD 26,550) you pay approx. DKK 44,500 in income tax (including gross tax), i.e. approx. 29.7% of the full amount.
If you have what is considered a very low income (DKK 150,000, USD 26,550), and you pay DKK 20,000 annually in interest, you pay approx. DKK 38,000 in income tax (including gross tax), i.e. approx. 25.3% of the full amount.
I'm very confused..
Also, I'm going to Denmark on a working holiday visa.
When I leave the country, will I be able to get a tax refund?