Declaration of payroll tax

Businesses that sell VAT-exempt services and that are required to register for payroll tax are, for example, doctors, dentists, physiotherapists and alternative healthcare providers, psychologists, banks and taxi drivers.

There are a total of four methods for calculating the tax base. The activity and organisational form of the business determine which method is to be used and thus the amount which constitutes the tax base for the business.

Each method has its own rate by which the tax base is to be multiplied to determine the payroll tax that you need to declare.

Read more on Payroll tax and Calculation of payroll tax.

Four ways for calculating the tax base

There are a total of four methods for calculating the tax base. The activity and organisational form of the business determine which method is to be used and thus the amount which constitutes the tax base for the business.

Each method has its own rate by which the tax base is to be multiplied to determine the payroll tax that you need to declare.

Read more on Payroll tax and Calculation of payroll tax.

If you have not had any activity during the payroll tax period, you must remember to file a zero declaration for the period to avoid the consequence of a provisional assessment, for example the risk of extra fees.

For more detailed, comprehensive legal information concerning a delayed or missing declaration of payroll tax, see our Danish-language legal guide.

The deadlines for when you are to declare payroll tax will depend on the method you are required to use to calculate the payroll tax.

You can log onto E-tax for businesses and see the open periods generated by the system. An open period refers to periods which have not yet been declared and which need to be declared.

Legal guide