As a general rule, employees from abroad must pay tax in Denmark on their salary from employment by Aarhus University (AU) in connection with the performance of their work in Denmark. There may be exceptions to this, for example if the provisions of a double taxation convention prevent Denmark from taxing the salary.
To be eligible for the researcher taxation scheme, the researcher must have either full or limited tax liability in Denmark.
Full tax liability in Denmark arises on gaining a place of residence in Denmark or on staying in Denmark for a consecutive period of at least six months (full tax liability arises as from the commencement of the stay).
Limited tax liability in Denmark arises when the researcher does not have a place of residence in Denmark and stays in Denmark for less than six months.
The most important conditions to be eligible for the researcher taxation scheme are:
Under the researcher taxation scheme, as from the 2018 fiscal year the salary is subject to gross taxation at 27% for up to 84 months (seven years), instead of the normal income tax rate. On the other hand, employees will not be entitled to any deductions from their salary income, nor to any personal allowance when the tax is calculated. Gross tax including contributions to the Danish social security scheme amounts to 32.84%.
Provided that the general eligibility conditions for the researcher taxation scheme are fulfilled, the extension of the researcher taxation period by 24 months may be used by researchers who:
Researchers who as at 1 January 2018 have used the 60 months cannot be transferred to the new scheme.
After the expiry of the researcher taxation period, the employee will be subject to taxation according to the general Danish tax rules.
For further information concerning taxation under the researcher taxation scheme, see the guide in Danish or English from Skattestyrelsen (the Danish Customs and Tax Administration).