Taxes in denmark

beryltheperil wrote:

I have been offered a job with Siemens in Denmark but I am rather concerned about the tales of high taxes and cost of living. Can anyone confirm what rate of tax would be deducted on a salary of DKK 55,500 monthly as I have read a few posts where it is shown to be about 52%. I have contacted the company but they refuse to discuss this topic and I contacted SKAT some time ago but have not had a reply. I have received my employment contract and there is nothing in there to assist in my decision but do not feel happy about making such a important move without more information about what sort of money I will be left with to support my family once all deductions are made bt the government. Any help would be appreciated.

I suggest that you do a Google search. I did and it seems that you would be on the high tax rate of 55.56% which starts if you earn more than 459,000 a year. There seems to be govt deductions which would lower your gross income and therefore lower your tax rate.

I am disappointed to hear that a big firm like Siemens is not more helpful regarding your very relevant tax question. I hope they are more welcoming regarding other issues you may have. About housing e.g.?

However, I shall try to help you if I can, but unfortunately, I am not an expert. There are special advantegous rules for researchers and key workers. Are you under this scheme?

You could start getting a e-tax number here: http://www.skat.dk/SKAT.aspx?oId=189927 … mp;lang=US (scheme 04.063)
When you have received it, it will be possible for you to calculate your provisional tax here: http://www.skat.dk/SKAT.aspx?oId=2083194&vId=0

It is important that you get a cpr.number as soon as possible after arrival. You'll get it at the local Borgerservice at the municipality, but I think you should try this one in stead: http://icitizen.dk/. You can read more about their services here : http://www.vidensby.dk/Files/Images/Med … eriale.pdf More about the background of this service: http://www.vidensby.dk/English.aspx

There is a calculator here (in Danish): https://www.skat.dk/SKAT.aspx?oID=44215
We can plot in our income and see how much to pay, but for some (good?) reason, I see that there is not an English version. It does not need a password. I don't know if you are able to use it? Else I shall give it a try, but that means that you have to tell me if you come alone, bring with you wife and kids (age) and how long you will stay here. I don't know how Skat cope with capital income abroad, but I think it may give you an estimate of the taxation.

As I wrote above, it is important to get the cpr.number as soon as possible because that is necessary to get a tax card, and without a tax card you will be charged 8 % for Labour market contribution and 55 % for provisional tax. Of course, the amounts will be repaid, but best to avoid it at all.

Hi Nellie

Thanks so much for replying to my query regarding possible income tax and other deductions from my salary with Siemens.

I asked the question about the 26% tax rate and Siemens HR  did tell me I am not eligible for this but refused to give me an approximate rate I will be charged nor did they direct me to someone that could help either the salaries department at Siemens or the government etc.

I did see online the SKAT office could help me so emailed over 2 weeks ago asking for assistance but todate have had no reply other than an automated reply to this email telling me to expect a reply within a few days  -  still waiting !!!

To help your calculations, I am married, my wife will not be working, we have no children, have no shares, we own a house in England worth about DKK 2,423,075 with a mortgage of DKK 811,153. Our family have lived in this house since 1999 when we moved to the USA. They pay the mortgage of DKK 2,105 per month and pay the utilities etc but we do not receive rental income. I am also in receipt of a small British pension of DKK 4,758 monthly. We will probably be renting a home while in Denmark and will probably there for about 5 years. We will also not belong to the Church of Denmark as we have read that you have to make this clear otherwise you are taxed for this, nor do I wish to pay into union or unemployment insurance schemes. I have also read that vehicles are heavily taxed and as I intended to ship my car which was worth about DKK 201,924 in 1999 but is now valued at about DKK 3,364 but would need to know how much it would cost to register the car in Denmark and what taxes would have to be paid before I could drive the car.

I hope that this information is sufficient to assist you in calculating roughly how much tax and other deductions I may be liable for as I am extremely nervous about arriving in the country to start our new life without first being able to assess how much money I, as the sole wage earner will have left to support my family.

You say you are disappointed to learn that Siemens have not been more helpful in helping me, but I have to say I am still in shock since being offered my new role in their organization, because I have been informed they offer no relocation assistance at all so the huge cost of shipping our home contents which we have been quoted as DKK 67,310 will have to be met from our house sale here in the USA, nor are they helping with our first months rental of a home although it seems other Danish companies do provide assistance and when we came here to the USA all these relocation expenses were paid for by the company.

The only assistance they are offering is DKK 40,000 before tax presumably for flights and maybe excess baggage costs, which will be paid with my first months salary.

Maybe this is how Siemens Denmark operate but it has blindsided us for sure as Siemens USA offer full relocation assistance upfront so that employees do not have to spend a cent of their own money.

This is the reason why I need to know my tax liability as all the profit from the sale of our US home will be spent on relocation and resettling expenses, getting us through the first month before my first paycheck.

Again Nellie any help you can give would be appreciated and thank you once again for your time.

Regards,

Paul