ATP and labour market contributions are deducted from the salary by the employer. The employee, who is covered by the special tax scheme, must pay ATP contributions and labour market contributions under the same rules as regular wage earners. Labour market contributions amount to 8% of the gross pay. You can find information of the ATP amount at www.atp.dk.

Tax is calculated on the salary after deduction of ATP contributions and labour market contributions.

In special circumstances, mandatory foreign social contributions can be deducted in the final calculation of tax under the special tax scheme. This is the case if:

  • the employee is covered by social security in an EU/EEA country or a country with which Denmark has an international agreement on social security
  • the employee is fully liable to taxation and resident in Denmark after a double taxation agreement with Denmark and the other country
  • the contributions are paid by either the employee or the employer, and it is deducted in the salary after including ATP contributions and labour market contributions
  • the employee is subject to limited tax liability and has concluded a special agreement with the employer on payment of mandatory employer social security countributions in an EU/EEA country

If the mandatory foreign (employer) social contributions are paid on both income under the scheme and income taxed in accordance with the general rules, the contributions will be divided proportionately.

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