Taxation in Denmark is highly automated. You need to get a personal tax number and tax card so your employer can automatically deduct taxes from your salary.
Before you start working in Denmark, you need to apply for a personal tax number and tax card. It is easy to apply using the online application form (available in multiple languages). You will need to provide the following documents:
After you have successfully submitted your application, it can take up to 2 weeks until the process is complete and you have your tax number and tax card.
The Danish Tax Agency issues three type of tax cards; primary, secondary and tax exemption cards. This card is an electronic document that states your personal income tax rate. From this information, your employer knows how much tax to deduct from your salary. Without a tax card, your employer will automatically deduct 55% (Feb.2019), so it's very important you get your tax card sorted before you start working.
The primary card is used for income that is stable and comes from one source, most commonly a salary.
If a person has more than one source of income, such as a second job or occasional odd jobs, then they are given a secondary tax card. If you are using a secondary card, be extra careful when checking your tax assessment notice. Sometimes your full income details won’t go directly to the Tax Agency and you will have to report them.
Annually, Danish workers are allowed to earn a certain amount of money that is not subject to tax (excluding labour market contributions). If you are earning less than this, you will receive a tax exemption card (check your preliminary income assessment to see your personal tax withholding rate - trækprocent). This card is most commonly given to students and young people starting their first job.
You also need to link one of your bank accounts (Danish or foreign) to your tax details as a NemKonto (Easy Account). A NemKonto is a normal bank account that is registered as the account where you will receive any public payments from the state, such as tax returns and benefits.