• Professional News
  • 02 May 2014

Denmark to relax tax scheme for foreign key employees

The Danish Minister of Taxation proposes to lower the minimum monthly salary requirement for international researchers and key employees by DKK 10,000. The objective is to make it easier for Danish businesses to recruit international specialists.

The Danish tax scheme for foreign researchers and key employees was implemented to give businesses easier access to recruiting foreign specialists and key employees for their organisation in Denmark.

The tax scheme offers foreign employees a favourable tax rate of 26% exclusive labour market contributions. That totals to a gross income tax rate of approx. 32%.

Now, the Danish government introduces a new bill to relax the tax scheme in order to make it easier for Danish businesses to recruit employees internationally.

Reduced minimum salary requirement
The tax scheme includes a minimum monthly gross salary requirement. Today, this is set at DKK 70,600. The new bill proposes a DKK 10,000 reduction in the minimum monthly salary requirement, equivalent to a monthly minimum salary of approx. DKK 60,600 before tax.
According to the Danish Ministry of Taxation, the reduction of the minimum monthly salary requirement will increase the labour supply and result in around 500 new jobs.

The bill is part of a larger reform proposal regarding international recruitment by Danish businesses.

Implementation date unknown
The Minister of Taxation has not yet set a date for the implementation of the new, lower monthly salary requirement.

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