Expat Tax Scheme Vs Normal taxation

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shalverma Member

Member since 30 October 2018

shalvermaMember15 April 2019 08:51:44

I have been offered a job with a Danish firm. As my salary is more than 70k per month, I have been offered to go with expat tax scheme which lets me pay a lower tax at 33% instead of approx 45%. However, there are few glitches.
1. I am not eligible for deductions. We are a family of 3 with non working wife and 5 y/o son.

2. I am not eligible for normal pension scheme. I would still be paid additional income in lieu of company’s pension contribution. Therefore I was offered to go for 53A pension scheme. The contribution to this scheme is taxed at 33%.

Could you please share if this scenario is favourable or should I opt for normal tax/pension scheme.

Please share what will be potential net income for both scenario.

Thanks in advance.

Nellie Berg Denmark Expert

Member since 15 August 2013

Nellie BergDenmark Expert15 April 2019 10:52:38

1147

I hope that these links can help you in taking your decision:
https://skat.dk/skat.aspx?oid=1801750 https://www.dip.dk/In-English/Member/Pe … -employees https://www.dip.dk/In-English/Member/Guidelines https://www.skat.dk/SKAT.aspx?oid=2244281&vid=0

There is also this online tax calculator, but it is meant for normal taxation:
http://www.tastselv.skat.dk/fskbrgn2/Skprofil.aspx

Examples of a normal taxation:
Income 840,000 kroner, spouse doesn't work, living in Gladsaxe = tax 339.942,12
Income 890,000 kroner ...................................................................... = tax 367.277,92
Income 940,000 kroner ...................................................................... = tax 394.613,72

http://icitizen.dk/https://www.skat.dk/skat.aspx?oid=22449 … vn=subtree

Tax is a complicated issue, and I would advise you to ask the company for further/professional help. You don't have to have taken the decision in advance why you can wait until you're in this country. I shall not say how much advice you can get from the International Citizen Centre, but I would definitely ask them.

/Nellie

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