Contact

10 Billion DKK tax break proposed

The Danish government has proposed a tax reform, which will give a tax break of 10 billion Danish Kroner (DKK) to 3.3 million Danes from 2026. The reform has also introduced a new "top-top-tax" for people with an annual income of more than 2.5 million DKK.
A picture showing a pair of scissors cutting a bag of money in half. The bag has text saying: "10 billion", and 3 coins are falling out of the bag and into a piggy bank. In the background a group of people is seen.

10 billion DKK yearly tax break

The Danish government has propsed a 10 billion Danish Kroner (DKK), roughly 1.3 billion EUR, tax break from 2026. The tax break will come into effect from 2026 and save Danish tax subjects an estimated 10 billion DKK yearly.

While 3.3 million Danes will receive tax breaks of said 10 billion DKK, roughly 8000 Danes will have to pay more in taxes due to the introduction of a new “top-top-tax” (top-top-skat) for persons with a yearly income of more than 2.5 million DKK.

Those who already pay top tax will be moved to a bracket of in-between tax (mellem-skat) of 7,5% instead of the current 15%. Persons who do not pay top tax will receive a yearly tax break of roughly 3000 DKK.

Before 2026

After 2026

15% top tax
618,400 DKK | 82,919 EUR

+5% extra top tax
2.5 million DKK | 335,191 EUR

+7.5% top tax
750,000 DKK | 100,559 EUR

7.5% Intermediate tax
618,400 DKK | 82,919 EUR


Link to source: The Danish Ministry of Economic Affairs (text in Danish)

A model showing the difference in tax before and after the new tax reform proposal to take effect from 2026

Link to source: The Danish Ministry of Economic Affairs (text in Danish)

Link to source: The Danish Ministry of Economic Affairs (text in Danish)

latest news

The A1 Certificate’s Crucial Role in EU Social Security

In an increasingly globalised work environment, ensuring compliance with international social security regulations is crucial for businesses and their employees. An A1 certificate plays a vital role in this context and is essential for cross-border workers. This article will explore the importance of obtaining an A1 certificate considering recent case law in Denmark.

Illustration of a person with a worried face standing at an open window, out of which money is flying. The background features a cargo vessel on the water. The sky is blue with white clouds, and the wall where the window is installed is made of red bricks.

Managing Tax Challenges for Employees Embarking on Nordic Vessels

In our globalised economy, companies frequently encounter intricate tax challenges, particularly when their employees engage in projects abroad. This article explores a recent ruling (SKM2024.333.ØLR) by the Eastern High Court of Denmark, providing insights on how businesses can effectively navigate the tax landscape to achieve compliance and optimal tax treatment.

do you have any questions?

* By checking GDPR Consent, you agree to let us store the information you provided in our system. You can always contact us to permanently remove your data. 

© Crossbord ®  – 2024. All rights reserved. Crossbord ®  and its design logo are registered trademarks of Crossbord ApS.

Scroll to Top