dk-income-tax

Section 1 -- Quick Reference

Quick Reference

Field	Value
Country	Denmark (Kongeriget Danmark)
Tax	AM-bidrag + Bundskat + Topskat + Kommuneskat + Kirkeskat (if applicable)
Currency	DKK only
Tax year	Calendar year
Primary legislation	Personskatteloven (PSL); Kildeskatteloven (KSL); Virksomhedsskatteloven (VSL)
Supporting legislation	Ligningsloven (LL); Afskrivningsloven (AL); Statsskatteloven (SL)
Tax authority	Skattestyrelsen (SKAT)
Filing portal	skat.dk / TastSelv
Filing deadline	1 July (self-employed, extended from 1 May)
Contributor	Open Accountants Community
Validated by	Pending -- requires sign-off by Danish statsautoriseret or registreret revisor
Validation date	Pending
Skill version	2.0

Tax Rates (2025)

Tax Rates (2025)

Tax	Rate	Applied To
AM-bidrag	8%	Gross personal income (FIRST, before all other taxes)
Bundskat	12.01%	Personal income after AM-bidrag, above personfradrag
Topskat	15%	Personal income after AM-bidrag above DKK 611,800
Kommuneskat	Avg 25.1% (22-27%)	Taxable income (varies by municipality)
Kirkeskat	Avg 0.87% (0.39-1.20%)	Only for Folkekirken members

Key Thresholds

Key Thresholds

Item	DKK (2025)
Personfradrag (personal allowance)	51,600
Topskat threshold (after AM-bidrag)	611,800
Skatteloft (tax ceiling)	~52.07% combined marginal rate
Straksafskrivning (immediate write-off)	15,400

VSO vs KAO vs Default

VSO vs KAO vs Default

Scheme	Key Feature	Best For
Virksomhedsordningen (VSO)	22% interim tax on retained profits	Significant interest expenses; variable income
Kapitalafkastordningen (KAO)	2% yield on net assets reclassified as capital income	Significant assets, limited interest
No scheme (default)	All profit = personal income	Simple; no income splitting

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown municipality	National average 25.1% kommuneskat (flag as estimated)
Unknown Folkekirken membership	No kirkeskat (0%)
Unknown VSO/KAO election	No scheme (default PSL)
Unknown business-use %	0% deduction
Unknown expense category	Not deductible

Section 2 -- Required Inputs and Refusal Catalogue

Required Inputs

• Minimum viable — bank statement for the full tax year, municipality of residence, business form (selvstaendig erhvervsdrivende). (Minimum viable)
• Recommended — all invoices, prior year arsopgorelse, tax scheme election (VSO/KAO/none), Folkekirken membership status. (Recommended)
• Ideal — complete regnskab (accounts), asset register, B-skat payment records, VSO indskudskonto and opsparingskonto balances. (Ideal)
• Refusal if minimum is missing — SOFT WARN. No bank statement = hard stop.

Refusal Catalogue

• R-DK-1 -- Companies (ApS, A/S, IVS) — This skill covers self-employed individuals only. Selskabsskat is out of scope.
• R-DK-2 -- International income / dual residency — Cross-border income requires specialist analysis. Escalate.
• R-DK-3 -- Complex VSO exits — Exiting virksomhedsordningen with significant opsparet overskud requires specialist computation. Escalate.
• R-DK-4 -- Transfer pricing — Transfer pricing is out of scope.

Section 3 -- Transaction Pattern Library

This is the deterministic pre-classifier. When a bank statement transaction matches a pattern below, apply the treatment directly. If none match, fall through to Tier 1 rules in Section 5.

3.1 Income Patterns (Credits)

3.1 Income Patterns (Credits)

Pattern	Tax Line	Treatment	Notes
OVERFORSEL [client], BETALING, HONORAR	Omsaetning (revenue)	Business income	If momsregistreret, extract net (excl. 25% moms)
STRIPE PAYOUT, PAYPAL PAYOUT	Revenue	Business income	Platform payout
LON, GAGE, ARBEJDSGIVER	Lonindkomst	NOT self-employment	Employment income
LEJEINDTAEGT, HUSLEJE	Lejeindkomst	NOT self-employment	Rental income
RENTER, UDBYTTE	Kapitalindkomst	NOT self-employment	Capital income
SKAT TILBAGEBETALING	EXCLUDE	Not income	Tax refund
UPWORK, FIVERR, TOPTAL	Revenue	Business income	Freelance platform

3.2 Expense Patterns (Debits) -- Fully Deductible (Driftsomkostninger)

3.2 Expense Patterns (Debits) -- Fully Deductible (Driftsomkostninger)

Pattern	Category	Treatment	Notes
KONTORLEJE, HUSLEJE KONTOR	Lokaleomkostninger	Fully deductible	Dedicated premises
ERHVERVSFORSIKRING, ANSVARSFORSIKRING	Forsikring	Fully deductible	Professional insurance
REVISOR, BOGHOLDER, REGNSKAB	Revisorudgifter	Fully deductible
ADVOKAT (business)	Advokatomkostninger	Fully deductible	Business-related
KONTORARTIKLER, KONTORMATERIALER	Kontorhold	Fully deductible
REKLAME, MARKETING, GOOGLE ADS, META ADS	Reklameudgifter	Fully deductible
UDDANNELSE, KURSUS, EFTERUDDANNELSE	Uddannelsesudgifter	Fully deductible	Related to current business
BRANCHEFORENING, FAGFORENING	Kontingenter	Fully deductible
BANKGEBYR, KONTOGEBYR	Bankudgifter	Fully deductible	Business account
STRIPE FEE, PAYPAL FEE	Transaktionsgebyr	Fully deductible
SOFTWARE, ABONNEMENT, LICENS	IT-udgifter	Fully deductible
PORTO, POSTNORD	Porto	Fully deductible	Business correspondence

3.3 Expense Patterns -- Travel

3.3 Expense Patterns -- Travel

Pattern	Category	Treatment	Notes
FLYREJSE, SAS, NORWEGIAN, RYANAIR	Rejseudgifter	Fully deductible	Business travel
HOTEL, BOOKING.COM	Rejseudgifter	Fully deductible	Business travel
DSB, REJSEKORT	Rejseudgifter	Fully deductible	Business travel
TAXA, DANTAXI, UBER, BOLT	Rejseudgifter	Fully deductible	Business purpose
BENZIN, DIESEL, SHELL, OK, Q8	Biludgifter	T2 -- business km only	Standard rate or actual

3.4 Expense Patterns -- Partially Deductible

3.4 Expense Patterns -- Partially Deductible

Pattern	Deductibility	Treatment	Notes
REPRESENTATION, KUNDEPLEJE, RESTAURANTBESOG	25%	Partially deductible	Representation expenses
GAVER TIL FORRETNINGSFORBINDELSER	Limited	Per-person limit applies	Business gifts

3.5 Expense Patterns -- NOT Deductible

3.5 Expense Patterns -- NOT Deductible

Pattern	Treatment	Notes
PRIVAT, DAGLIGVARER, SUPERMARKED, NETTO, FOTEX	NOT deductible	Personal living costs
BODE, STRAF	NOT deductible	Fines
SKAT, INDKOMSTSKAT, B-SKAT BETALING	NOT deductible	Income tax
PRIVATHVAEVNING	NOT deductible	Drawings

3.6 Capital Items (Driftsmidler Pool)

3.6 Capital Items (Driftsmidler Pool)

Pattern	Method	Rate	Notes
COMPUTER, LAPTOP, PC	Declining balance pool	Up to 25%	If over DKK 15,400
MASKINE, UDSTYR, INVENTAR	Declining balance pool	Up to 25%	Pool depreciation
BIL, PERSONBIL (business)	Declining balance pool	Up to 25%	Business vehicle
SOFTWARE (purchased, over DKK 15,400)	Declining balance pool	Up to 25%
Small items (under DKK 15,400)	Straksafskrivning	100% immediate	Full deduction
BYGNING (business)	Straight-line	4%	Business buildings
GOODWILL	Straight-line	1/7 (~14.3%)

3.7 Exclusions

3.7 Exclusions

Pattern	Treatment	Notes
INTERN OVERFORSEL, EGNE KONTI	EXCLUDE	Own-account transfer
LAN, AFDRAG	EXCLUDE	Loan principal
RENTER LAN (business)	Deductible	Business loan interest (important for VSO)
MOMS BETALING	EXCLUDE from P&L	Moms liability
B-SKAT BETALING	Track separately	Preliminary tax credit

3.8 Danish Banks -- Statement Format Reference

3.8 Danish Banks -- Statement Format Reference

Bank	Format	Key Fields	Notes
Danske Bank	CSV, PDF	Dato, Tekst, Belob, Saldo	Most common; Netbank export
Nordea DK	CSV, PDF	Bogforingsdato, Tekst, Belob
Jyske Bank	CSV, PDF	Dato, Tekst, Belob
Sydbank	CSV, PDF	Dato, Tekst, Belob
Spar Nord	CSV, PDF	Dato, Posteringstekst, Belob
Lunar, Revolut	CSV	Date, Counterparty, Amount	Neobank format

Section 4 -- Worked Examples

Example 1 -- Client Payment (Momsregistreret)

Input line: 15/03/2025 ; Danske Bank Indgang ; KREATIV BUREAU APS ; Faktura 2025-003 ; +62,500.00 ; DKK

Reasoning: Client payment. If momsregistreret (25% moms), DKK 62,500 includes moms. Net = DKK 50,000 (revenue) + DKK 12,500 moms (excluded).

Classification: Revenue = DKK 50,000. Moms DKK 12,500 excluded.

Example 2 -- Representation (25% Deductible)

Input line: 22/04/2025 ; Nordea Visa ; RESTAURANT NOMA ; Kundepleje ; -4,000.00 ; DKK

Reasoning: Representation expenses. Only 25% deductible for tax. DKK 4,000 x 25% = DKK 1,000 deductible. DKK 3,000 not deductible.

Classification: Driftsomkostning = DKK 1,000. DKK 3,000 add back.

Example 3 -- AM-bidrag Computation

Input line: Gross business income: DKK 600,000.

Reasoning: AM-bidrag = DKK 600,000 x 8% = DKK 48,000. Paid FIRST, before all other taxes. Remaining DKK 552,000 is the base for bundskat, topskat, kommuneskat.

Classification: AM-bidrag DKK 48,000. Taxable base DKK 552,000.

Example 4 -- Equipment Over Straksafskrivning Limit

Input line: 03/06/2025 ; Danske Bank Kort ; DUSTIN A/S ; SERVER ; -25,000.00 ; DKK

Reasoning: Server DKK 25,000. Over DKK 15,400 straksafskrivning limit. Must enter driftsmiddel pool. Year 1 depreciation: DKK 25,000 x 25% = DKK 6,250.

Classification: Add to driftsmiddel pool. Depreciation DKK 6,250. NOT direct expense.

Example 5 -- B-skat Payment (Not Expense)

Input line: 10/01/2025 ; Danske Bank ; SKAT ; B-SKAT JANUAR ; -8,000.00 ; DKK

Reasoning: Preliminary tax payment. Not a business expense. Track as credit against final tax liability.

Classification: EXCLUDE from expenses. Track for tax settlement.

Example 6 -- Moms in Revenue (Exclude)

Input line: Total receipts DKK 750,000 including 25% moms.

Reasoning: Net revenue = DKK 600,000. Moms DKK 150,000 is liability to SKAT, not income.

Classification: Revenue = DKK 600,000.

Section 5 -- Tier 1 Rules (When Data Is Clear)

5.1 AM-bidrag

• AM-bidrag rule — 8% on gross personal income. Calculated FIRST, before all other deductions and taxes. Reduces base for bundskat, topskat, kommuneskat.

5.2 Bundskat and Topskat

• Bundskat — 12.01% on personal income (after AM-bidrag) above personfradrag
• Topskat — 15% on personal income (after AM-bidrag) above DKK 611,800
• Skatteloft — combined marginal rate capped at ~52.07%

5.3 Kommuneskat and Kirkeskat

• Kommuneskat — varies by municipality (22-27%)
• Kirkeskat — only for Folkekirken members (0.39-1.20%)

5.4 Personfradrag

• Personfradrag — DKK 51,600. Provides tax value = personfradrag x (bundskat + kommuneskat + kirkeskat rates). Applied as credit.

5.5 Driftsomkostninger (Business Expenses)

• Driftsomkostninger — Deductible if incurred to acquire, secure, or maintain income (SL ss 6). Mixed-use must be apportioned. (SL ss 6)

5.6 Depreciation (Afskrivninger)

• Driftsmidler — declining balance pool, up to 25%/year
• Buildings — straight-line 4%/year
• Goodwill — straight-line 1/7/year
• Under DKK 15,400 — straksafskrivning (immediate)
• Under 3-year life — immediate regardless of cost

5.7 Non-Deductible

5.7 Non-Deductible

Expense	Reason
Private living expenses	SL ss 6
Fines	Public policy
Income tax	Tax on income
Capital items (above DKK 15,400)	Through depreciation
Representation (75%)	Only 25% deductible

5.8 B-skat (Preliminary Tax)

• B-skat — 10 monthly instalments (Jan-May, Aug-Dec). Self-assessed expected income. Adjustable via TastSelv. Underpayment above DKK 22,900 attracts interest.

5.9 Filing Deadlines

5.9 Filing Deadlines

Item	Deadline
Oplysningsskema (self-employed)	1 July
Extension (via revisor)	Typically 1 September
B-skat instalments	Monthly (10 payments)

5.10 Penalties

5.10 Penalties

Offence	Penalty
Late filing	DKK 200/day (max ~DKK 5,000)
Negligent incorrect return	Up to 20% of understated amount
Gross negligence / fraud	Up to 100% + prosecution

5.11 Moms Interaction

5.11 Moms Interaction

Scenario	Income Tax Treatment
Moms collected (momsregistreret)	NOT income -- exclude from revenue
Input moms recovered	NOT expense -- exclude
Non-deductible moms	IS expense -- adds to cost
Not registered (under DKK 50,000)	No moms; gross = net

Section 6 -- Tier 2 Catalogue (Reviewer Judgement Required)

6.1 VSO vs KAO vs Default Election

• VSO vs KAO vs Default election — Must model all scenarios. VSO advantageous when significant business interest expenses or variable income. KAO when significant assets. Flag for reviewer.

6.2 VSO -- Opsparet Overskud

• VSO Opsparet Overskud — Retained profits taxed at 22% interim. Withdrawals taxed as personal income (22% credited). Complete separation of business/private required.

6.3 Home Office

• Dedicated room, exclusively business — proportional actual costs
• Standard deduction — 2,100 DKK/year (2025, alternative to actual costs)
• Room suitability — Room must be unsuitable for private use. Flag for reviewer.

6.4 Vehicle Business Use

• Standard rate (first 20,000 km) — 3.79 DKK/km
• Standard rate (thereafter) — 2.23 DKK/km
• Actual costs alternative — Or actual costs with logbook. Flag for reviewer.

6.5 Phone / Internet

• Phone / Internet — Business portion only. Default 0%.

6.6 Personfradrag Transfer (Married)

• Personfradrag transfer — Unused personfradrag transferable between spouses for bundskat only (not topskat). Flag for reviewer.

Section 7 -- Excel Working Paper Template

DENMARK INCOME TAX -- WORKING PAPER
Tax Year: 2025
Client: ___________________________
Municipality: ___________ (Kommuneskat: ___%)
Folkekirken: Yes / No (Kirkeskat: ___%)
Tax Scheme: VSO / KAO / None

A. BUSINESS INCOME
  A1. Omsætning (net of moms)                     ___________
  A2. Øvrige indtægter                             ___________
  A3. Total                                        ___________

B. DRIFTSOMKOSTNINGER
  B1. Lokaleomkostninger                           ___________
  B2. Forsikring                                   ___________
  B3. Revisor / bogholder                          ___________
  B4. IT / software                                ___________
  B5. Reklame / marketing                          ___________
  B6. Rejseudgifter                                ___________
  B7. Biludgifter (business %)                     ___________
  B8. Repræsentation (25%)                         ___________
  B9. Afskrivninger                                ___________
  B10. Bankudgifter                                ___________
  B11. Øvrige driftsomkostninger                   ___________
  B12. Total                                       ___________

C. RESULTAT (A3 - B12)                             ___________

D. TAX COMPUTATION
  D1. AM-bidrag (8% x gross)                       ___________
  D2. Personal income after AM                     ___________
  D3. Bundskat (12.01%)                            ___________
  D4. Topskat (15% on excess > DKK 611,800)        ___________
  D5. Kommuneskat                                  ___________
  D6. Kirkeskat (if applicable)                    ___________
  D7. Personfradrag credit                         ___________
  D8. Total tax                                    ___________
  D9. Less: B-skat paid                            ___________
  D10. Balance due / refund                        ___________

REVIEWER FLAGS:
  [ ] Municipality confirmed?
  [ ] Folkekirken membership confirmed?
  [ ] Tax scheme (VSO/KAO/none) confirmed?
  [ ] Vehicle method confirmed?
  [ ] Home office arrangement confirmed?
  [ ] Representation at 25%?
  [ ] All items over DKK 15,400 in depreciation pool?

Section 8 -- Bank Statement Reading Guide

Danish Bank Statement Formats

Danish Bank Statement Formats

Bank	Format	Key Fields	Notes
Danske Bank	CSV, PDF	Dato, Tekst, Beløb, Saldo	Netbank CSV export
Nordea DK	CSV, PDF	Bogføringsdato, Tekst, Beløb
Jyske Bank	CSV, PDF	Dato, Tekst, Beløb
Sydbank	CSV, PDF	Dato, Tekst, Beløb
Spar Nord	CSV, PDF	Dato, Posteringstekst, Beløb
Lunar	CSV	Date, Counterparty, Amount	Neobank

Key Danish Banking Terms

Key Danish Banking Terms

Term	English	Hint
Indbetaling	Deposit/credit	Potential income
Udbetaling	Withdrawal/debit	Potential expense
Overførsel	Transfer	Check direction
Betalingsservice (BS)	Direct debit	Regular expense
Dankort	Debit card	Expense
Hævning	Withdrawal	Cash -- ask purpose
Gebyr	Fee/charge	Bank charge

Section 9 -- Onboarding Fallback

ONBOARDING QUESTIONS -- DENMARK INCOME TAX
1. Business form: selvstændig erhvervsdrivende?
2. Tax scheme: Virksomhedsordningen, Kapitalafkastordningen, or none?
3. Municipality of residence?
4. Member of Folkekirken?
5. Home office: dedicated room or shared?
6. Vehicle: standard km rate or actual costs?
7. Phone/internet: business use %?
8. Prior year årsopgørelse available?
9. B-skat paid in the year? Monthly amounts?
10. Other income (employment, capital, share)?

Section 10 -- Reference Material

Key Legislation

Key Legislation

Topic	Reference
Personal income tax	Personskatteloven (PSL)
AM-bidrag	Arbejdsmarkedsbidragsloven
VSO	Virksomhedsskatteloven (VSL)
KAO	Kapitalafkastordningen
Deductibility	Statsskatteloven ss 6; Ligningsloven
Depreciation	Afskrivningsloven (AL)
Filing	Skattekontrolloven
B-skat	Kildeskatteloven (KSL)
Bookkeeping	Bogføringsloven (5 years)

Test Suite

Test 1 -- Mid-range, Copenhagen. Input: Copenhagen (kommuneskat 23.8%), not Folkekirken, gross DKK 600,000, expenses DKK 150,000, no VSO. Expected: AM-bidrag DKK 48,000. Net DKK 402,000. Below topskat. Total ~DKK 173,479.

Test 2 -- High income, topskat. Input: Aarhus (24.6%), Folkekirken (0.71%), gross DKK 1,000,000, expenses DKK 200,000. Expected: AM DKK 80,000. Topskat on DKK 920,000 - DKK 611,800 = DKK 308,200 x 15%.

Test 3 -- VSO retained profit. Input: Net DKK 500,000, retain DKK 300,000 in VSO. Expected: DKK 300,000 x 22% = DKK 66,000 interim. Rest at personal rates.

Test 4 -- Equipment over limit. Input: DKK 20,000 computer. Expected: Pool depreciation 25% = DKK 5,000. NOT direct expense.

Test 5 -- Representation overclaimed. Input: DKK 8,000 at 100%. Expected: 25% = DKK 2,000 deductible. DKK 6,000 add back.

Test 6 -- Moms in revenue. Input: DKK 750,000 gross including 25% moms. Expected: Revenue DKK 600,000.

PROHIBITIONS

• NEVER compute AM-bidrag on net income -- always 8% on GROSS
• NEVER apply topskat below DKK 611,800
• NEVER charge kirkeskat without Folkekirken confirmation
• NEVER include moms in taxable revenue
• NEVER allow capital items over DKK 15,400 as direct expense
• NEVER advise on VSO/KAO without modelling scenarios -- flag for reviewer
• NEVER allow 100% representation deduction -- maximum 25%
• NEVER treat VSO opsparet overskud withdrawals as tax-free
• NEVER present calculations as definitive

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a statsautoriseret revisor, registreret revisor, or equivalent licensed practitioner in Denmark) before filing or acting upon.

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