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Denmark – Extension of specialist tax regime

Written by
Norrbom Vinding, the largest labour and employment law practice in Scandinavia and the market leader in Denmark.
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The Danish specialist tax regime has been amended with effect from 1 January 2018. The regime provides a flat tax rate for a limited time and is available to certain Danish and foreign nationals working in Denmark.

Previously, employees could be liable to pay tax at a rate of 26% for five years. Now, employees covered by the regime may be liable to be taxed at a rate of 27% for up to seven years.

After adding the labour market tax of 8%, the effective tax rate will be 32.84%.

In our view, the amendments should apply to employees subject to the old rules, meaning that if the employee joined the regime on or after 2 January 2013, they should be eligible to another two years at the lower tax rate.