Tax scheme for foreign researchers

It is possible to apply for reduced taxation on earned income for researchers recruited abroad to be employed in a Danish company or research institution.

The purpose of the tax scheme for foreign researchers is to enable Danish businesses and research institutions to attract and retain highly qualified labour from abroad. The researcher taxation scheme applies to all industries and covers both Danes and foreign nationals.

How to apply

This section covers the special gross tax scheme for foreign researchers and highly-paid employees covered by sections 48 E – 48 F of the Danish Withholding Tax Act (Kildeskatteloven; KSL), which enables approved researchers, who are recruited abroad, to pay a gross tax rate of 27% + labour market contributions for a period of up to 7 years total.

When recruiting employees in companies or institutions not covered by the Danish University Act (Lov om universiteter m.fl.) and the Danish Government Research Institution Act (Lov om sektorforskningsinstitutioner), SKAT, in co-operation with Independent Research Fund Denmark, will assess applications for registration of the employment under the gross tax scheme for foreign researchers and highly-paid employees.

Important regarding deadlines: The applicant must submit the application to Independent Research Fund Denmark no later than one month after the beginning of employment. Independent Research Fund Denmark requires that the degree certificates of persons liable to pay tax (the taxable employee) have been evaluated by the Danish Ministry of Higher Education and Science (see category 3a of the form). Seeing as such an evaluation will likely require some casework time, it may be necessary to send in the application to Independent Research Fund Denmark without attaching this evaluation, which must then be submitted to Independent Research Fund Denmark as soon as the applicant receives it. Please note that the deadline of one month applies to Independent Research Fund Denmark’s receipt of the application form – as such, it is not sufficient simply to send the material for the assessment of degree certificates within the deadline.

What must be sent to Danish Tax Agency?

The application to Danish Tax Agency (Skattestyrelsen) must be submitted using a form which can be found on skat.dk. Here you will also find their guidelines for the application procedure.

Form to be sent to Danish Tax Agency

Danish Tax Agency's guidelines (Danish)

Danish Tax Agency’s guidelines (English)

What must be sent to Independent Research Fund Denmark?

The application for approval of the researcher’s qualifications and the amount of research work included in the position must be submitted to Independent Research Fund Denmark using the form for Researcher Taxation Scheme:

Form for Researcher Taxation Scheme (Word document)

If the application is submitted by the employer, please include a filled out, signed consent form: 

Consent form (Word document)

The form to Independent Research Fund Denmark includes a description of the appendices that must be attached. The form is in English, but it may be filled out in Danish if preferred.

Processing of personal data

Read here #7 about the way Independent Research Fund Denmark processes personal data in connection with applications regarding the tax scheme for foreign researchers.

E-mails without sensitive personal data may be sent to forskerskatteordning@ufm.dk. Applications and other enquiries that may contain sensitive personal data may be submitted via these links:

Direct link for companies

Direct link for individuals

 

Questions and answers

Here you can find answers to the questions that the fund most often receives about the tax scheme for foreign researchers.