Expat Tax Scheme Vs Normal taxation

2POSTS

7 years ago

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鈥檚 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.

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Nellie Berg Denmark Expert

1161POSTS

7 years ago

I hope that these links can help you in taking your decision:

There is also this online tax calculator, but it is meant for normal taxation:

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

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