Tax obligations in Denmark
As a resident in Denmark, you are obliged to pay taxes on any income earned within the country. This of course includes salaries and wages, but also grants and scholarships such as the state educational grant SU. If you are also paying taxes in your home country, you may be eligible for a tax treaty that prevents double taxation if Denmark and your country has a tax treaty. Go to lifeindenmark.dk to learn more about double taxation.
In Denmark, taxes are progressive, which means that the more you earn, the more taxes you pay. What taxes are spent on in Denmark.
Paying taxes in Denmark
The first thing to do to enable you to pay taxes is to get a CPR number and NemID – find out how here. These are a given and also required if you want to apply for SU and probably also by your employer if you take a job. Once you have your CPR number and NemID, you can apply for a Danish tax card here.
As most other public services in Denmark, the tax system is highly digitalised. Once you have applied for and been granted a tax card, your employer can find it in the tax system along with information on your deductions and tax percentage. The employer will automatically deduct your taxes from each pay check.
How to navigate the taxsystem
The Danish tax system can be a bit of a mouthful if you are not used to navigating it. However, there are lots of guides out there making it easier to understand. The Danish tax agency Skat has made this guide for new tax payers and students with advice on taxes on your student job as well as SU grant. Also, the E-tax system offers lots of integrated help guides. Most importantly, keep an organised record of your earnings, for example by keeping your payment slips (lønsedler).
If you are feeling very overwhelmed, consider hiring an accountant for a few hours to help you get everything in order.