The Danish Taxes

Denmark is the master of tax. According to international statistics, Denmark has the highest overall taxation in the world. The following is a selection of the taxes:

• A complex system of income taxes takes up to about 70% of peoples' salaries.
• Plundering of personal pension funds. One of the underlying principles is that the funds are allowed to grow with the inflation plus 2-3%. Any revenue above that is confiscated as tax. In fact, the calculations are so complex that it's impossible for anyone to verify them.
• The Value Added Tax is the highest in the European Union with 25% on all products and services, food and children's articles included.
• Excise duties ("punktafgifter") add some extra tax to specific products like alcohol, tobacco, chocolate, soft drinks, packaging, matches and petrol. The excise duty is calculated on the goods and the VAT, resulting in a system where one pays tax on tax.
• Car registration tax of 180% of the car and the VAT (the first 45.000 kr. are taxed "only" at 90%, and there are deductions for some safety equipment). Note that this includes a "tax tax" because the registration tax is also calculated on the VAT.
• Annual road tax.
• Tax on car insurance.
• Fuel tax.
• Energy taxes.
• Green taxes.
• Driving licence tax.
• The European Union's most expensive television licence of 1894 kr. a year.
• Various stamp duties, such as 600 kr. for a passport.
• Tax on the number plates for cars of about 1200 kr.
• Full income tax on all savings interests and capital gains. Many countries have taxfree schemes to encourage individual savings. Not Denmark.
• Property tax.
• Another tax on owned property. This used to be called tax of lejeværdi af egen bolig (letting value of own habitation). The communist principle behind it was that the habitation represents a potential taxable letting income. The letting value was calculated on a progressive scale from 2.5% to 7.5% of the public valuation. The letting value was added to the personal income before income tax was calculated. Thus, one paid tax of an income one never had. The principles have now been changed in order to hide the fraudulent nature of this tax. This tax is due even on properties abroad owned by residents of Denmark, and even if such properties abroad are already taxed in the country where they are.
• Inheritance tax.
• Emigration tax.