Global Daily Tax News, Denmark Implements Personal Income Tax Reforms, (Jun 7, 2024)

Denmark implemented a series of changes to the personal income tax regime on June 1, 2024.

The legislation was signed off by lawmakers on May 16, 2024.

The law provides for a 7.5 percentage point reduction to the top tax rate for incomes (before labor market contribution) up to DKK750,000 (2023 level), while at the same time increasing the top tax rate by five percentage points for incomes (before labor market contribution) over DKK2.5m (2023 level).

In addition, the legislation increases the employment deduction and the additional employment deduction for single parents and introduces an additional employment deduction for employed seniors who have two years or less until retirement age.

Finally, the bill provides for an increase to the estate tax basic deduction from January 1, 2026, and the repeal of the additional estate tax for inheritances bequeathed to siblings from January 1, 2027.