Danish tax payers contributed record amounts during Covid-19 crisis

Danish tax payers contributed record amounts during Covid-19 crisis
People paid more tax in Denmark last year despite the Covid-19 pandemic. Photo: Ólafur Steinar Gestsson/Ritzau Scanpix
Tax contributions in Denmark hit a record high amount in the last tax year despite the effects of the coronavirus pandemic. Wage compensation schemes have been praised for protecting private and national economies.

The average tax payment by individuals last year was 93,183 kroner, according to Statistics Denmark data.

Encompassing income, shares and property tax, the amount is a 5.1 percent increase on the preceding year.

The increase has been linked to “frozen” holiday money (feriepenge) payouts, part of the government’s response to soften the economic impact of the coronavirus crisis.

“Additionally, wage compensation schemes contributed to supporting the labour market and thereby kept both incomes and tax revenues up during Covid-19,” Statistics Denmark writes.

READ ALSO: Four ways to (legally) lower your tax bill in Denmark

Many, or even a majority of people in Denmark are in a better place financially now than they were before the pandemic, according to the Danish Chamber of Commerce (Dansk Erhverv).

“The big increase in Danes’ taxable incomes reflects the positive development most Danes have seen to their private financial situations during the corona crisis,” the organisation’s senior economist Tore Stramer said.

“A series of compensation packages have simply given protection to many Danes’ private finances,” he added.

“It’s a huge success because healthy private Danish finances have ensured that the Danish economy has come flying out of the corona crisis,” Stramer commented.

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