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General Tax Information

Danish Income Taxes

In Denmark, we have primarily four different tax schemes available, when we settle the relevant income taxes for work performed physically in Denmark. Kindly observe special rules apply for individuals attending meetings, work shops or training sessions.

Below you will find our Fact Sheets describing in brief the basic principles. For details you will find relevant links to the Tax Authorities in Danish and English respectively.

Feel free to contact your usual contact person at Northern Partners for tax issues / consequences / implications of any kind, as a correct setup is essential and even minor personal information can have huge consequences.

– From a tax perspective, two persons are not alike –

Danish income tax
  Fact Sheet
External link to Tax Authorities (DK) (ENG)

Hiring out of labour tax
  Fact Sheet
External link to Tax Authorities (DK) (ENG)

§§48e / Expat taxation scheme
  Fact Sheet
External link to Tax Authorities (DK) (ENG)

Hydrocarbon taxation scheme 
External link to Tax Authorities (DK) (ENG)

Swedish Income Taxes

GENERAL INFORMATION

All individuals working in Sweden must pay income tax on their gross salary. In Sweden salaries are quoted after deductions of so-called Employer costs.

Social Security Contribution (Ssc) of 31,42% and the monthly accumulation of vacation pay of 12% (equivalent of 25 days of paid vacation per year) are both added on top of the gross salary, increasing the actual cost of employment.

This effectively means, that the monthly employment cost of a single individual is much higher than what´s stated as the gross salary. It also means that to achieve a certain monthly gross salary a freelancer/consultant always must take the employer cost into account, when quoting an hourly or daily rate for their work.

DEDUCTIONS

The most common way to increase retention when working on Normal or Expert taxation scheme in Sweden, is to make tax deductions for Dual Household and Travels to/from foreign residency.

If the contractor keeps his/her residency in the home country, it is possible to deduct the cost for temporary residence in Sweden, and travels between the home and the residency/work site in Sweden. The sum of these costs is then used as a deduction when calculating the salary tax level

Normal taxation
  Fact Sheet
External link to Tax Authorities (SE) (ENG)

Expert taxation
  Fact Sheet
External link to Tax Authorities (SE) (ENG)

SINK taxation
  Fact Sheet
External link to Tax Authorities (SE) (ENG)

Denmark

Danish Income Taxes

In Denmark, we have primarily four different tax schemes available, when we settle the relevant income taxes for work performed physically in Denmark. Kindly observe special rules apply for individuals attending meetings, work shops or training sessions.

Below you will find our Fact Sheets describing in brief the basic principles. For details you will find relevant links to the Tax Authorities in Danish and English respectively.

Feel free to contact your usual contact person at Northern Partners for tax issues / consequences / implications of any kind, as a correct setup is essential and even minor personal information can have huge consequences.

– From a tax perspective, two persons are not alike –

Danish income tax
  Fact Sheet
External link to Tax Authorities (DK) (ENG)

Hiring out of labour tax
  Fact Sheet
External link to Tax Authorities (DK) (ENG)

§§48e / Expat taxation scheme
  Fact Sheet
External link to Tax Authorities (DK) (ENG)

Hydrocarbon taxation scheme 
External link to Tax Authorities (DK) (ENG)

Sweden

Swedish Income Taxes

GENERAL INFORMATION

All individuals working in Sweden must pay income tax on their gross salary. In Sweden salaries are quoted after deductions of so-called Employer costs.

Social Security Contribution (Ssc) of 31,42% and the monthly accumulation of vacation pay of 12% (equivalent of 25 days of paid vacation per year) are both added on top of the gross salary, increasing the actual cost of employment.

This effectively means, that the monthly employment cost of a single individual is much higher than what´s stated as the gross salary. It also means that to achieve a certain monthly gross salary a freelancer/consultant always must take the employer cost into account, when quoting an hourly or daily rate for their work.

DEDUCTIONS

The most common way to increase retention when working on Normal or Expert taxation scheme in Sweden, is to make tax deductions for Dual Household and Travels to/from foreign residency.

If the contractor keeps his/her residency in the home country, it is possible to deduct the cost for temporary residence in Sweden, and travels between the home and the residency/work site in Sweden. The sum of these costs is then used as a deduction when calculating the salary tax level

Normal taxation
  Fact Sheet
External link to Tax Authorities (SE) (ENG)

Expert taxation
  Fact Sheet
External link to Tax Authorities (SE) (ENG)

SINK taxation
  Fact Sheet
External link to Tax Authorities (SE) (ENG)

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