Taxation when working or conducting research at Aarhus University
All who work or conduct research in Denmark should contact the Danish Customs and Tax Administration
You need to contact The Danish Customs and Tax Administration, upon arrival in Denmark. This is important no matter where you live, who your employer is or how long you will work in Denmark. Most people who work and/or live in Denmark become tax liable to Denmark and need to pay tax. This also applies to scholarship holders, also if you have been informed that you do not need to pay tax on your scholarship. Only the Danish tax authorities can assess your tax liability.
If you do not contact the Danish Customs and Tax Administration upon arrival in Denmark, you may get a large tax bill later on.
We therefore recommend all scholarship holders, guest researchers, employed researchers, PhD students, etc. to contact the Danish Customs and Tax Administration to sort out their tax situation. The easiest is:
- Visit your nearest International Citizen Service (ICS) – either on your own or as part of the Getting Started in Denmark event and enquire directly with the Danish Customs and Tax Administration whether you need to pay tax or not
- If you are not near an ICS, write the Danish Customs and Tax Administration (see under Contact) or fill out the form 04.063. Guest researchers are recommended to fill out the paper version of the form
If you are on the researcher taxation scheme
If you are on the researcher taxation scheme and have additional income than your salary, you should also contact the Danish Customs and Tax Administration. When you live and work in Denmark, you are liable to pay tax on your global income, which means income on property, stocks, or other income besides your salary. We therefore also recommend people on the researcher taxation scheme to contact the Danish Customs and Tax Administration.
The Danish Customs and Tax Administration: Your guide to working in Denmark
The Danish Customs and Tax Administration has made an online guide to tax in Denmark in five different languages. The guide will help you with the steps to take upon arrival in Denmark, when working and living in Denmark and when your employment ends.
The Danish Customs and Tax Administration: Your guide to working in Denmark
Tax registration
How to get a tax card
As an international employee at Aarhus University you will need to obtain a tax card (which is a virtual, not a physical card) from The Danish Customs and Tax Administration. You get the tax card by registering at the Danish tax authorities upon arrival in Denmark. You can do this online. The tax card ensures that you get the tax allowances and reliefs you are entitled to before your employer withholds tax from your income.
If you are on the researcher taxation scheme
If you are on the Researcher Taxation Scheme (paying a gross income tax of 27 %) you do not need to register for tax, your HR partner will do the tax registration for you.
Tax registration
You need to register for tax online by filling in the Form 04.063 and attach:
- Information about your salary and pension
- Your purchase agreement if you have bought a property
- Bank details regarding interest income and expenses, foreign accounts, etc.
- Personal identification, e.g. your passport
- Work and residence permit or EU residence certificate
During your first year in Denmark, it is your responsibility to inform the Danish Costums and Tax Administration about your financial situation. the Danish Customs and Tax Administration can subsequently calculate the amount of tax you need to pay and provide you with a tax card. If you do not make sure to get a tax card from the Danish Customs and Tax Administration, Aarhus University is obliged to withhold 55% of your salary for taxes with no allowance. The electronic tax card consists of two parts: A deduction card (hovedkort) and a secondary card (bikort). Aarhus University uses the deduction card to calculate the amount of tax deducted from your pay. The secondary card is used if you work for several employers at the same time.
Researcher taxation scheme
When you are employed at Aarhus University as a foreign researcher or a key employee you may under certain conditions be eligible for the special tax scheme for foreign researchers or key employees. On this scheme you will only pay a gross income tax of 27 percent (excl. the job market contribution) for up to 84 months (7 years) instead of the standard income tax.
- Your employment as a researcher must begin no later than one month after your arrival in Denmark.
- Furthermore, you must not have been tax liable to Denmark during the last ten years prior to the beginning of your employment.
It is also possible to be on the researcher taxation scheme, if you are employed in Denmark but live abroad. It is a requirement that you work in Denmark at least one day a month.
Please inform your HR-partner whether you wish to be on the researcher taxation scheme or not.
For more information have a look at Aarhus University's HR website.
Read more about the tax scheme for foreign researchers and highly-paid employees under the Danish Costums and Tax Administration: Guides on the the Danish Costums and Tax Administration website.
Deductions and allowances
Employees may have work related allowances and deductions taken into account in their annual tax statement. They are subtracted from the taxable income and thus reduce the taxes to be paid. The most important allowances and deductions can be found below.
- Personal allowance (personfradrag): each tax payer has a personal allowance. This will automatically be taken into account without you having to explicitly claim it.
- Employment allowance (beskæftigelsesfradrag): this amount will also be taken into account automatically.
- Transportation allowance (befordringsfradrag): part of the transportation costs for your commute to and from work can be taken into account in your tax statements. Find distance rates for daily travel to and from work.
E-tax and change of tax card
E-tax (TastSelv) is the online self-service system for the Danish Costums and Tax Administration.
You can update your tax information yourself in your tax folder (skattemappe) via e-tax for individuals on the Internet. You should update your tax information if you:
- Get a new job with substantially higher or lower pay
- Start your own business
- Are unemployed or on a pension, or retire early
- Change your marital status
- Buy or sell a house or apartment
- Convert or redeem loans, e.g. a housing loan
- Join a capital pension scheme or another private pension scheme
- Move, and the distance between your home and work is considerably longer or shorter (your transport allowance must be changed)
- There are significant changes in your capital income
Annual tax statement
The tax year in Denmark runs from January 1st to December 31st.The Danish tax authorities provide a tax calendar for individuals (and for business), where you can see the deadlines for different taxation issues.
- Preliminary tax assessment notice (selvangivelse): from February you can make changes to the data which is in your online tax folder. You will see the tax that has been calculated for the previous year and which tax allowances and deductions have been taken into account. Make corrections if necessary.
- Annual tax statement/tax assessment notice (årsopgørelse): from March you will be able to see your tax assessment notice for the previous year. Corrections should be done latest by May 1.
- Preliminary income assessment (forskudsopgørelse): each year in November, the Danish Costums and Tax Administration generates a preliminary income assessment of your expected income for the following year. You should update your tax data if your figures are not correct.
Preliminary tax assessment notice
The preliminary income assessment (forskudsopgørelse) shows how much tax you have to pay in the coming tax year. You will receive your preliminary income assessment electronically every year in November. You can view your preliminary income assessment notice in your tax folder (skattemappe) via e-tax for individuals (TastSelv) online.
The tax authorities give an example of a preliminary income assessment, which includes a description of the estimated income and deductions as well as estimated provisional tax and labour market contributions.
See preliminary income assessment (example, limited tax liability) and Preliminary income assessment (example, full tax liability) under the Danish Costums and Tax Administration: Guides on the the Danish Costums and Tax Administration website
Read more about preliminary income assessment.
IMPORTANT IN NOVEMBER: How to change your preliminary tax assesment notice
In case you need to change your preliminary income assessment, the Danish Costums and Tax Administration has made a step-by-step guide to how to make changes in the preliminary income assessment. See information about how to change your preliminary income assessment.
Annual tax assessment notice
The tax assessment notice is a form showing all the figures known to the Danish Costums and Tax Administration for the preceding tax year concerning your income, allowances etc. Every year in March/April, you will receive a tax assessment notice. You can view your annual tax assessment notice in your tax folder (skattemappe) via e-tax for individuals (TastSelv) on the Internet.
You can see an example of an annual tax assessment notice under the Danish Costums and Tax Administration: Guides on the the Danish Costums and Tax Administration website.
Read more about how to correct your annual tax statement if it is not correct.
Tax assistance
Aarhus University is not allowed to give personal advice on taxation issues. International Staff Office will be able to assist you in finding general information about tax rules.
We will refer you to the Danish Customs and Tax Administration for specific questions about your personal tax.
If you need additional tax assistance or guidance, you can also contact our AU provider Deloitte. Check with your department if they will cover the expenses, otherwise, you will need to find out about pricing and pay yourself.
Deloitte contact: Lars Bennedsgaard Andersen
Tax adviser and Director
Tax - Global Mobility MN
Direct phone: +45 61 70 53 51
larsandersen@deloitte.dk