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  • YourTax Denmark

Optimize take-home pay | Plan tax and more before accepting a job in Denmark


By now you have passed all phases from being selected as job candidate to personality tests and job interviews and then...

"CONGRATULATIONS YOU GOT THE JOB"

(But are you ready to accept?)

Do like others and get a review of the Offer Letter so you know e.g. take-home-net, pension scheme options etc. and further what to expect in costs for relocating.

WHERE DOES IT GO WRONG?

Despite Danish companies offers special services, we still see many "bad" job offers mainly due to misalignment of expectations and lack of knowledge from companies.

See examples of topics below:

Special Danish Tax Scheme (option for using low tax scheme lost due to lack of knowledge of how to structure the salary package and formal application process to the tax authorities - the mistake can result in a 10-25% higher Danish tax rate)

Pension Scheme (option for using a special scheme allowing cash out with no Danish tax compared to 60% Danish tax when leaving Denmark)

Relocation package (offered services are often tax liable, e.g. move of household or temporary accommodation will as main rule be taxable benefits. Companies forget to align on expected tax resulting in significant increase in relocation costs for the new employee - for some it means their net salary for one or several months are "eaten" up by tax on relocation benefits provided by the company)

Take home net (the Danish tax system is very complex and Google-check-Danish tax rates gives a wrong impression of take home net salary - companies and employees should always use a professional tax adviser to estimate the Danish tax and factor in private income and circumstances)

Cost of living (to many forget to explain what to expect in start up expenses for housing, International schooling etc. which leads to wrong assessment of salary offer competitiveness)

Holidays, Phone, Internet, Company car etc. continued....

WHAT CAN YOU DO?

If you are about to accept a job offer in Denmark we strongly recommend you to consult with a tax professional for a "Offer Letter review".

This way you truly know e.g. take-home-net, pension scheme options etc. and further what to expect in cost for relocating.

ENDING REMARKS

We can help you navigate in tax rules and review your Offer Letter ensuring you truly know what you are saying "YES" to.

Please feel free to contact us for support.

We are ready at make@yourtax.dk or Phone +45 6065 8157.

Best regards


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