European Commission Taxes in Europe Database v2
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Law on tax on labour costs (Lønsumsafgiftsloven). Statutory Notice No 1079 of 31 August 2013.
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.
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.
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
The tax is due every quarter.
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.
