There is only one fair way to explain why free education,, including financial support, is possible in Denmark. The taxing level is high, but it works. Private people and companies pay their taxes, and the government re-invests the taxes in the Danish welfare system. All systems are very transparent, and it is nearly impossible for the government to cheat with taxpayers' money. If one tries, sooner or later, it will end as headlines in the newspapers, and the guilty will have to explain in public and in court, no matter if s/he is an office worker, an ordinary government member, or the prime minister.

 

The Danish taxing system for private people's salaries is divided into the below-listed levels, and to ensure you are taxed on the right level, you must adjust your tax card at SKAT’s (tax 🇬🇧) webpage with your expected salary and expected deductions, if any. You must log in with your MitID, which automatically goes to your tax page. 

 

Tax-free amount:

Under 18 yrs: 38.400 DKK  (5.168€)

Adult, 18 or more: 48.000 DKK (6.460 €) 

 

When you reach this level you start to pay around 38% tax of your SU and salaries. From your salary (but not the SU), you must also pay 8% am (a special tax on salaries all wage earners pay ) 

 

Bonus info: You must activate your tax card before you start working. Otherwise, your salary will automatically be taxed as B-income with the highest tax level. 

 

Yearly statement of your tax payment: Personal taxes are paid monthly and are reduced automatically from your salary. The taxing inventory follows the calendar year and is calculated at the beginning of the following year. It is important every year to check your tax card if all salaries are stated correctly. In some cases, fx if you have long transportation to your work, you can get an extra deduction to cover this, but it is your own responsibility to inform SKAT about it. In March, you can check at SKAT if you have paid too much or too little. An extra paid tax will be returned from SKAT to your Nemkonto medio in April, and if you own SKAT money, you can transfer them without extra interest until the first of July. 

 

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