Income tax is the basic deduction to be made to the state. When calculating this tax all the incomes of an entity shall be summed up irrespective of the source. Income tax in Denmark comprises of the 5 charges:
- State charge;
- Municipal charge;
- Regional charge;
- Church charge;
- Employment Centre charge.
The average rate amounts to 58%, however, the regulatory authorities apply progressive rates when making calculations and the said value can be decreased. Income tax includes a complicated system of calculations in which an employer is not involved. The responsibility is fully borne by an employee.
For individuals, some other types of taxes are set:
- Real estate tax – about 1% of the total amount;
- Inheritance tax – the maximum value can reach 36%;
- Dividends tax – 30%.
Transport tax (vehicle tax) can amount up to 180% of the price. Such high rates are associated with the authorities concern about the environmental situation in the country.