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Generic Tax Name Duty on wage and salary costs
Tax name in the national language lov om afgift af lønsum m.v. (Lønsumsafgift)
Tax name in English Duty on wage and salary costs
Member State DK-Denmark
Tax in force since 1989/12/19
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco

Social security contribution Employers
Legal base

Law on tax on labour costs (Lønsumsafgiftsloven). Statutory Notice No 1079 of 31 August 2013.

Who sets
The tax rate is set by

The tax base is set by

The reliefs are set by



Geographical Scope


Businesses engaged in certain activities not liable to VAT under the VAT law. From 1992 and onwards all VAT exempt companies (financial companies, lotteries, tourist offices, funds, associations, non-profit housing associations etc.) became subject to the payroll tax.

Tax object and basis of assessment

As a principal rule the business's labour costs plus the taxable profit or minus the taxable deficit.

For businesses engaged in financial activities, lotteries, tourist information agencies, organisations, funds, etc., the basis of assessment is the business' labour costs. For businesses engaged in publication or import of newspapers, the basis of assessment is the value of the business' sale of newspapers.

Deductions, Allowances, Credits, Exemptions

Rate(s) Structure


Basic rules as of 2015

Business engaged in financial activities (banking, insurance, mortgage credit and pension trust companies)

Businesses engaged in lotteries and betting as well as organisations, funds, associations etc.

Businesses engaged in publication or import of newspapers

Other businesses subject to payroll tax


12.2% of labour costs


6.37% of labour costs


3.54% of the value of the business’ sale of newspapers


4.12% of labour costs plus taxable profit or minus taxable deficit


Tax due date

The tax is due every quarter.

Tax collector

The tax is payable on a quarterly basis. Businesses shall pay the tax not later than by the 15th day of the first month after the end of the quarter concerned. For businesses using the principal rule the quarterly payment is only provisional. The final collection of tax is paid at the end of the tax year.

Special features
Economic function

Environmental taxes

Tax revenue
ESA95 code d29ce

Annual tax revenue (millions)
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 5,771.18 DKK 0.31
2011 5,761.41 DKK 0.31
2010 5,115.22 DKK 0.28
2009 4,449.87 DKK 0.26
2008 4,668.68 DKK 0.26
2007 4,642.31 DKK 0.27
2006 4,454.68 DKK 0.27
2005 4,079.23 DKK 0.26
2004 3,791.04 DKK 0.25
2003 3,630.80 DKK 0.25
2002 3,573.00 DKK 0.25
2001 3,939.40 DKK 0.29
2000 3,365.30 DKK 0.25