Employee benefits are benefits which are paid for by your employer and which you may use privately. There are different rules on how much tax you must pay, depending on the types of benefit.

  • Some benefits are tax exempt, for example work-related education and fruit schemes
  • Special rules apply to some benefits, for example free telephone, free residence, and free food and accommodation.
  • Benefits not specifically linked to your work and which have a total value of more than DKK 1,200 are taxable (for example, leisure trips and remunerations).
  • Other benefits specifically linked to your work are only taxable if their total value exceeds DKK 6,500.

See your tax assessment notice, box 20

Change your tax assessment notice, box 20

The most common employee benefits include:

  • Free food and accommodation
  • Company car
  • Free telephone
  • Health insurance, including treatment.

You can read more about the above employee benefits via the links in the right-hand side on this page (or below if you are using a mobile phone).

Tax-free benefits

You do not have to pay tax on certain benefits, for example:

  • Training and education expenses if they are of relevance to your work
  • The value of a parking space or Brobizz which you use in connection with your work
  • One-time office parties and events, free fruit schemes, etc.

You will not be taxed on employee benefits of a total value of maximim DKK 6,500 (DKK 6,300 in 2020) if these benefits are directly linked to your work.

Such employee benefits  include:

  • Free food and drinks if you work overtime.
  • Free newspaper to be used in your work.
  • Free passes for public transport given for work-related transport and which may be used for other private transport between home and work.
  • Credit card schemes.
  • Driving licence (partially) paid for by your employer and used as part of your work.

If the value of the employee benefit exceeds DKK 6,500 in 2021 (DKK 6,300 in 2020), you will be taxed on the total value. If, for example, you are given employee benefits which have a total value of DKK 6,600, you will be taxed on the full amount.

Employee benefits not included in the minimum amount of DKK 6,500 in 2021 (DKK 6,300 in 2020)

The below employee benefits are not included in the minimum amount as they are taxed separately:

  • Company car
  • Free telephone
  • Free residence
  • Free pleasure craft
  • Free radio and media licence
  • Free food and accommodation according to the rates of the Danish Ministry of Taxation
  • Food and accommodation not included in your salary/wage
  • Staff loans

If the benefits are not specifically linked to your work, you will be taxed on the benefits if their total value exceeds DKK 1,200 in 2021 (DKK 1,100 in 2020).

Please see our Danish website for information about Christmas gifts, gifts in kind and vouchers as we are currently working to update the English version.

Benefits received as remuneration are fully taxable. If, for example, your employer pays for a leisure trip instead of giving you a bonus, you must pay tax on the leisure trip.

If you combine a business trip with a leisure trip paid for by your employer, you must pay tax on the market value of the leisure trip. The same applies if your employer pays for a trip which is not sufficiently linked to your work.

If you redeemed air miles which you accumulated in connection with the trips paid for by your employer, you must report the amount you should have paid to, for example, the airline, travel agency or hotel had you not redeemed the air miles. Log on to E-tax and enter the amount in box 20 of your tax assessment notice.

Language

Please see our legal guide (in Danish) for further legal information.