Skatteloven

Skatteloven is the central Danish statute for taxation. It sets the framework for levying taxes on individuals and businesses, and forms the basis for calculating tax liability. Administered by SKAT, it works together with other tax laws to determine what income is taxable, what deductions are allowed, and how tax is assessed and collected.

The act covers personal income tax, corporate income tax, withholding taxes, and certain local taxes. It defines residence for tax purposes, classes of income, and the rules by which income is calculated, including allowances and reliefs. It also provides for deductions for work-related expenses, personal allowances, and other reliefs.

Tax administration under the act is largely based on self-assessment. Taxpayers file annual returns, and SKAT issues assessments and collects the tax due. The act sets out penalties for non-compliance and provides for audits and dispute resolution, including internal appeals and external tribunals.

Skatteloven operates within an international framework. It interacts with double taxation treaties and EU law, affecting cross-border incomes, transfer pricing, withholding on payments to non-residents, and information exchange. It is supported by related statutes on VAT, property taxes, and tax credits, and by administrative practice.

The act has been amended regularly to reflect economic and policy changes and to align with international standards. Reforms have aimed at simplification, better tax administration, and digital filing and reporting.