Why Payroll matters – understanding Denmark’s transition to a reporting based tax system
In the early 2000s the Danish Tax Ministry had a vision of a tax return-free society. With the changes in 2018 the system has taken a big step forwards, and we are “almost” there. In 2018 the Danish system simplified its tax system by eliminating traditional self-reporting (tax return) and replacing it with a more streamlined reporting system. This change supports the broader vision of reducing administrative burdens and leveraging technology to enhance tax compliance. The new approach particularly impacts global mobility, where the responsibility for accurate income reporting shifts significantly towards employers.