Denmark – Social security and tax changes 2024

Changes in social security contribution

Effective from 1 January 2024, the Arbejdsmarkedets Tillægspension (ATP) contribution rates are revised for employees who are paid monthly.

Changes in taxes

Effective from 1 January 2024, the following changes have been noted for tax.

The allowable deduction for transportation to and from work has been amended as follows:

If an employee earns less than DKK 363,700 in 2024, they will be entitled to an additional deduction for transport between home and work up to DKK 15,400. It is reduced gradually for income between DKK 313,700 and DKK 363,700 in 2024.

Employment and Job Allowance deductions have been amended for 2024 as follows:

Employment allowances for single parents have been amended to DKK 25,300 in 2024.

Additional pension contribution deductions are amended as follows:

Company car rates for 2024 are as follows

Deduction for employment related expenses

The initial lower threshold for other deductions regarding employment related expenses has been amended to DKK 7,000.00 for 2024. This applies to but is not limited to home, telephone, health expenses and entertainment.

For benefits-in-kind, the threshold for internet, computer, or phones etc., paid or provided by employer, has been increased to DKK 3,200.00 for 2024.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

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Denmark – Social security and tax changes 2024

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