4 ms·

Not exactly sure what taxes this guy is paying, but I’ve never heard of the 15 + 15%. Most everyone I know is on the 39% bracket, or higher if they’re high earn

by slau 3y ago

Not exactly sure what taxes this guy is paying, but I’ve never heard of the 15 + 15%. Most everyone I know is on the 39% bracket, or higher if they’re high earners. Electronics aren’t necessarily more expensive, Europe just has VAT included in the price. Amazon.be, .de, and .se all deliver to Denmark, often with free shipping (although Amazon.de recently increased the free shipping from 29€ to 59€)

drainyard 3y ago
Well I guess there is kommuneskat, which differs between kommuner. So you can pay anything between 37 to 39 depending on where you live. But the 15% base tax doesn't make sense to me either.
bryanrasmussen 3y ago
The guy is from the U.S evidently, when living abroad and an U.S citizen you pay U.S taxes and taxes abroad which is a hassle, however you can take off your taxes from one or the other from your income (can't remember if it is take off from U.S the other taxes, or take U.S taxes off the other) maybe you can do either one and so you choose which is more beneficial. It would obviously be more beneficial to deduct U.S tax from income before paying EU tax. All that said I'm not sure about this guy's tax rate, just there are probably wrinkles here that will make things come out weird if not taken into account. on edit: although his phrasing makes it sound like it is applying to all Danes, which anyway would be weird, why would you care what Danes pay if your concern is figuring out the cost/benefits of you (or someone like you) moving somewhere.
Dudester230602 3y ago
Does Denmark recognise freelancers - one-man companies? Or do they rob them same way as permanent staff?
- spyke112 3y ago
  If you incorporate as a "single person company", the taxation is for the most part identical to being employed, you can chose another taxation scheme that's sort of like an LLC, but not really. If you're serious as a freelancer, you need to create a LLC, which gives you the possibility to properly save up capital in the company, and eventually pay out dividends instead of a salary which is taxed at a flat 27% up to a threshold that changes each year (in 2023 it's $16.966,24 if married or $8.483,12 if not), above that it's taxed at a flat 42%. We still have corporate tax of any profits at 22%, which means that you still need to pay out a salary and maximize the effective personal tax rate before paying out a lot of dividends. The only reason this is even a thing in tech, is because of the massive taxation of salaries above ~$100k. If i recall then whatever personal income in the upper bracket is effectively taxed at ~60%, which sucks. It makes it extremely expensive for the employer to give meaningful raises to top performers, and creates an artificial ceiling on salaries that is really hard to break through, unless you go freelance, but that comes with a lot of uncertainty and extra work. I prefer full control over my income and accept the uncertainty in exchange for that.

by slau 3y ago

drainyard 3y ago

Well I guess there is kommuneskat, which differs between kommuner. So you can pay anything between 37 to 39 depending on where you live. But the 15% base tax doesn't make sense to me either.

bryanrasmussen 3y ago

The guy is from the U.S evidently, when living abroad and an U.S citizen you pay U.S taxes and taxes abroad which is a hassle, however you can take off your taxes from one or the other from your income (can't remember if it is take off from U.S the other taxes, or take U.S taxes off the other) maybe you can do either one and so you choose which is more beneficial. It would obviously be more beneficial to deduct U.S tax from income before paying EU tax. All that said I'm not sure about this guy's tax rate, just there are probably wrinkles here that will make things come out weird if not taken into account. on edit: although his phrasing makes it sound like it is applying to all Danes, which anyway would be weird, why would you care what Danes pay if your concern is figuring out the cost/benefits of you (or someone like you) moving somewhere.

Dudester230602 3y ago

Does Denmark recognise freelancers - one-man companies? Or do they rob them same way as permanent staff?

spyke112 3y ago
If you incorporate as a "single person company", the taxation is for the most part identical to being employed, you can chose another taxation scheme that's sort of like an LLC, but not really. If you're serious as a freelancer, you need to create a LLC, which gives you the possibility to properly save up capital in the company, and eventually pay out dividends instead of a salary which is taxed at a flat 27% up to a threshold that changes each year (in 2023 it's $16.966,24 if married or $8.483,12 if not), above that it's taxed at a flat 42%. We still have corporate tax of any profits at 22%, which means that you still need to pay out a salary and maximize the effective personal tax rate before paying out a lot of dividends. The only reason this is even a thing in tech, is because of the massive taxation of salaries above ~$100k. If i recall then whatever personal income in the upper bracket is effectively taxed at ~60%, which sucks. It makes it extremely expensive for the employer to give meaningful raises to top performers, and creates an artificial ceiling on salaries that is really hard to break through, unless you go freelance, but that comes with a lot of uncertainty and extra work. I prefer full control over my income and accept the uncertainty in exchange for that.