Danes face the world's highest tax burden
The Local · 10 Dec 2014, 14:20
Published: 10 Dec 2014 14:20 GMT+01:00
Denmark is the most taxed country in the world with nearly half of its GDP raised through taxes, giving it a tax-to-GDP ratio that towers over the other OECD countries.
Danes are the most heavily taxed people in the world and taxes are rising in Denmark at a rate that outpaces most other nations.
A newly-released report
from the Organization for Economic Cooperation and Development (OECD) shows that the tax burden in Denmark stood at 48.6 percent in 2013, the highest among the 34 OECD member countries.
While the OECD average was an increase from 33.7 to 34.1 percent between 2012 and 2013, Denmark’s rate increased from 47.2 to 48.6 percent. The rise of 1.4 percentage points is over three times higher than the average tax increase in the same period.
By basically every measure, Denmark taxes its residents more than most countries – filling its state coffers with higher revenues from taxes on income, profits and capital gains than the OECD average. In fact, the income that Denmark raises by taxing income, profits and capital gains accounts for 62 percent of its total tax revenues, nearly double the OECD average of 34 percent.
The 30.7 percent tax on income and profits dwarfs the OECD average of 11.4 percent and is well above the next highest nation Norway, which takes 18.6 percent of its employees’ incomes.
The 25 percent Danish VAT is also significantly above the OECD average, which sits at 19.1 percent, although Denmark has the same VAT rate as Norway and Sweden and is topped by both Iceland and Hungary.
According to the OECD, overall taxation among the world’s top economies rose to the highest level in six years in 2013.
Tax receipts collected by OECD countries went from an average of 33.7 percent of the GDP in 2012 to 34.1 in 2013.
Denmark’s leading tax burden was followed by France
For more news from Denmark, join us on
The Danish flag has never been hoisted at Fredensborg Palace. Photo: Royal Court
A Danish mayor is to complain at the lack of flagpoles at Fredensborg palace, the royal family's autumn retreat, which makes it impossible to fly the beloved Dannebrog.
The toe has been part of Birte Brorson's family life for decades. Photo: Nina Brorson
"I brought the toe with me to school once to show my classmates. I said, 'I’ve got his toe at home'. No one believed me, so I brought it there to show them."
The man lived in Bornholm, known for the old timber houses of the capital Ronne. Photo: Algkalv/Wikipedia
A 33-year-old man from Bornholm has admitted to being the driving force behind a Scandinavian-language paedophile ring, a prosecutor has claimed on the first day of the trial.
President of EU parliament Martin Schulz attends a conference titled "People in Europe" on October 10, 2016 in Passau. Photo: Armin Weigel/Scanpix Denmark
The president of the European Parliament has accused the anti-immigration Danish People’s Party of misleading Danish voters into voting “no” in last year’s EU referendum.
Peta slammed Danish royals for wearing fur-lined boots. Photo: Danish Court
Denmark’s royals are making the country look “callous and out of touch”, animal rights group Peta has claimed, after they posed in fur-lined boots for a Greenland stamp.
The plaintiffs argue that the checks violate their right to enter their own country. Photo: Scanpix
More than 100 Danes are demanding compensation from the Swedish government for the border checks brought in at the start of the year.
DPP leader Kristian Thulesen Dahl has been highly critical of MEP Morten Messerschmidt (background). Photo: Jens Nørgaard Larsen/Scanpix
Denmark's anti-immigration Danish People's Party (DPP) was reeling on Wednesday from a string of EU expenses scandals, including a trip to Brussels when European institutions were closed.
The stone was found broken in two with a small piece missing. Photo: Skalk
A mysterious stone found by Danish archeologists might be a 5,000-year-old map showing the location of different fields in the nearby area.
Queen Margrethe II inspects some artefacts in the Danish Royal storeroom. Photo: Danish Royal Court
Not content with being an artist, illustrator, and costume designer, Denmark’s Queen Margrethe II has become a historian.
This clown is a Mexican on a zombie walk and has not been involved in scaring children in Denmark. Photo: Argonz/Flickr
Three young boys in Denmark were chased by a clown wielding an axe late on Tuesday afternoon, as the “killer clown” craze continued to rage in the country.