Denmark to Extend Expatriate Individual Income Tax Flat Rate Scheme and Increase the Rate

According to recent reports, the Danish government is planning to extend the availability of the individual income tax flat rate scheme for expatriate workers from a maximum of five years to a maximum of seven years, along with an increase in the rate from 26% to 27%. The current scheme is available for skilled expatriate workers, subject to a number of conditions. Under the scheme, expatriate income is subject to the standard 8% labor market tax and a 26% flat tax, resulting in an effective …