If you come to work in Denmark, you need to obtain a tax card from the Danish taxation authorities (SKAT) via your employer. The tax card ensures that you get the tax allowances and reliefs you are entitled to before your employer withholds tax from your income.
Following your personal registration at the National Registry Office, go to the tax administration authorities (SKAT - Skatteforvaltningen ) at your local municipality. In Aarhus, you can visit the One Stop Shop where both authorities offer face-to-face assistance and guidance.
Your employer refers to SKAT qhen calculating your taxation. During your first year in Denmark, it is your responsibility to inform SKAT about your financial situation. SKAT can subsequently calculate the amount of tax you need to pay and provide you with a tax card which is as accurate as possible. If you do not get a tax card from SKAT, Aarhus University is obliged to withhold 60% of your salary with no allowance.
The electronic tax card consists of two parts: A deduction card (hovedkort) and a secondary card (bikort). The university uses the deduction card to calculate the amount of tax deducted from your pay. The secondary card is used if you work for several employers at the same time.
You must bring the following when you register with SKAT:
E-tax (TastSelv) is SKAT's self-service facility (How to order a new e-tax password).
How to change or file information in your tax folder (skattemappe) via e-tax
Special, favorable tax rules apply to foreign researchers and key employees.
When you are recruited to Aarhus University as a researcher or a key employee, you need consider which taxation scheme you would like to work under. You can choose to pay a gross income tax of 26% for a period of 5 years instead of paying standard income tax. However,, you will not have the right to deductions from your annual income or the right to personal allowance in the calculation of the tax. In addition to the 26%, you must also pay ATP (Danish labour market supplementary pension) and AM (Labour Market) contributions.
If you are a resident of another country and are obliged to pay taxes there, an application for tax exemption has to be made. Please inform the personnel office responsible for your employment contract about your situation.