Foreign researchers and key employees can apply for a tax rate that reduces income tax to 26% for up to 36 months.
In order for key employees to benefit from this programme income needs to be at least 70.600 DKK per month (salary rate is after ATP, labour market contributions or any obligatory foreign tax contributions).
For researchers to benefit from this programme qualifications and job content as a scientist need to be documented according to the OECD definition. There are no minimum salary requirements for approved researchers.
To use this programme your employer must be Danish (or a Danish branch of a foreign company), and the employee may not have worked for another company within the same group for a period of three years prior to being subject to Danish taxes.
It you use the reduction scheme for foreign researchers and key employees, your tax level is levied on the total salary income without deductions of any kind. This means that you can offset neither allowances nor personal allowance.
Below you will find an example of a calculation on reduced tax for foreign researchers or key employees. The example is for a single individual with no child support, and salary income is excl. labour market contribution. All figures are yearly in DKK.
|Salary income gross (incl. labour market contribution)||DKK 1.043.000|
|Labour market Contribution 8%||DKK 83.440|
|Salary income gross (excl. Labour market contribution)||DKK 960.000|
|Tax rate 26%||DKK 249.600|
|NET Salary|| DKK 710.400