Get help about Unemployment Insurance in Denmark
0 votes
Hi,

I would like to know if the unemployment benefit given to recent graduate students is subject to taxes. And if so how much is the tax? For example, I saw that in most A-kasser organizations the amount given is 14,690 kr. From this amount how much goes for taxes?

Best regards,
"S.V"
in Dagpenge by
retagged

1 Answer

0 votes
Thank you for your question.

If we say that you will have no other income than unemployment benefits payment,
the you will have to pay about 32% in tax. But the first 43.400 kr. is total tax-free.

Best regards,
Anders
A-kasser.dk
by (21.2k points)
Thanks for your quick answer. I just have one more question. Does the amount given to recent graduates varies depending on the organization? For example MA and AKA? Or is it the same for everyone?

Best regards,
"S"
Hi again

you get exactly the same amount no matter which of the 26 a-kasser you choose.
It is in reality payed/secured by the Danish State.
So you are sure about your money.
Best,
Anders
A-kasser.dk
Hello,
 I would like to ask if this info is still relevant today or the law has changed regarding taxes on benefits?
 Thank you very much for your information!
Best regards,
Maggie
Hi,
here in 2017 the first DKK 45.000 will be free of tax. From DKK 45.000 and up to DKK 479.600 you must pay about 37% of your income in tax.

Best regards,
Anders, www.a-kasser.dk
I just spoke with SKAT about some other tax matters and I asked them about this 45000 kr and they said it is only if you earn up to 4000 kr a month. To me it is very confusing why they said different thing than you and also the fact that a friend of mine had the benefits last year and she was taxed just 8% but now me an everyone I know will be taxed 38%. I have never worked during my stay in Denmark and this will be definitely my first income here so I do not understand why this law or rule does not work anymore.

Best regards,
Maggie
Yes, but when you receive unemployment benefits you also "earn" money according to the danish TAX-system. And to take full effect of the tax-free amount you must earn an average of DKK 4.000 per month. (12x4.000=48.000). Everyone who have income in Denmark (from work or benefits) have this free tax-amount before they must begin to pay tax.  
So in this way it is correct what SKAT told you.

If you take into account this free amount of DKK 45.000 you will pay less than 37% in Tax. The 37% is the tax-rate for income from DKK 45.000-DKK 479.600.

If you receive unemployment benefits ("Dagpenge") for a full year you will receive about DKK 220.000.
So you pay 37% of DKK 175.000.

I dont know where the 8% is coming from...this is FOR SURE wrong.

Another thing is that many people have the right to deduct different expenses in their tax accounts so they will pay less in taxes. This applies, for example. If you pay interest on loans.  But normally persons who are  unemployed have not many expenses that can be deducted in the tax-balance.
 
Let us know if you find out that our answer is not correct...

Best regards,
Anders, www.a-kasser.dk
Thank you for the detailed info! So basically what I understand is that now from 13 150 kr I will receive monthly around 9000 kr, as up to 7000 or so there is no tax and the tax start from around 6500-7000 kr. I think I understand now how it works!

Thank you very much for your answer! Will let you know if I find that this answer is not correct.

Best,
Maggie

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