You are to pay taxes from the income you have in Denmark. At the tax administration of your local municipality, you will receive a tax card. The tax card states:
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Your tax rate; Shows the part of your income that is withheld as tax.
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Your tax deduction: Shows the amount you can earn without paying taxes. The deductions are distributed evenly over the year. The tax deduction consists of a personal allowance and possibly other deductions.
For example, the following payments entitle you to deductions:
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Trade union membership fees
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Membership fees for unemployment insurance funds
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Transportation, if you travel more than 24 kilometres between your home and work (note, you are only entitled to a deduction for the kilometres that exceed the 24 kilometres)
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Private pension scheme payments
You can deduct the fees for trade union and unemployment fund membership from your taxes. This means that you will actually get some of the money back. The tax card is divided into two individual cards: a tax rate and deduction card and a secondary card. The tax rate and deduction card you must give to your employer. If you have two jobs, you must hand in the tax rate and deduction card to the workplace where you earn the highest salary. The secondary card you must hand in at the other workplace (if you have one).
You have the responsibility for the accuracy of the information on your tax card. The taxation authorities automatically get most of the information from your employer, trade union and unemployment insurance fund. You do not have to collect that much information yourself, but you must verify the accuracy of the information contained in the documents that are sent to you by the taxation authorities. You may contact the tax administration office in your municipality if you have questions or need assistance.
You can read more about paying taxes in Denmark in the leaflet "Tax in Denmark; An introduction - for new citizens". The leaflet is published by the Ministry of Taxation, Central Customs and Tax Administration and it has been-translated into Arabic, Farsi, Somali and English. You can get the leaflet from your local authorities or at the tax administration office, or download it at skat.dk (PDF).
