Income tax in Denmark

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?

Hi.

I did not understand one little bit of what you just wrote, and I am Danish:D!!

Let me try and explain the tax to you in a simple way, it is really not that difficult when you are paying the tax because tax is deducted from your pay before it is paid into your account. It is your employers responsibility and headache. 

The first +/- 40.000Kr you earn a year is tax free(except for the 8%). That is split out on the 12 months of the year, so your salary is the same every month. Earning above that amount and you will start to pay tax. Normal income tax is about 38% to about 60%. Most people in regular jobs pay the 38%, nurses, teachers, gardeners, police officers, clerks, waiters, you get my flow. I do not know exactly how much you can earn before paying a higher tax%.       
There are some things you can deduct from your tax, like if you travel very fare to go to work, or other work related expenses like a phone you use for work etc.

There is no such thing as getting your tax money back.. :D 

Good luck with everything, and don't worry too much about the tax thing.

Regards Sarah

I shall be arriving to Fredericia, Denmark in April, and will start my job as Plant Designer (Piping Engineer) my salary would be arround 40000 to 45000 DKK,
Can anybody tell me what exact figure in percentage of tax I would pay (i.e 30%, 35% or 40%) from my salary.?

Regards,
Farman

Hi,

Fredericia is my home town :D I hope you are going to enjoy it there.

The minimum tax % is 38% But with your earnings you might have to pay a higher %

Maybe you should contact the company and have them answer the question as they should know the exact figures.

Regards
Sarah

@SARAH,

Thanks for the info and your time, wat about the accomodation? can I find on studio appartment easily and on how much rent per month?/
My job would be in Snaremosevej area..

Regards,
Farman

Snaremosevej is in Fredericias only Suburb of Erritsø, it is not fare away so you can still easily live en Fredericia and drive/cycle/take the bus to work.

Try looking at www.lejebolig.dk and www.boligportal.dk ans search for what is available in Fredericia and Erritsø. There is not so many studio apartments around, but you should be able to get a small flat for about 4000 dk per month, + utilities on the side.

Regards Sarah

Thanks Again Sarah,

one last thing, can I find resturants where I can get some muslim food (Pakistani, Arabic and or Turkish) in the same area..??

Regards,
Farman