Essay on Foreigners' Tax Scheme in Denmark

Essay on Foreigners' Tax Scheme in Denmark

Length: 535 words (1.5 double-spaced pages)

Rating: Good Essays

Open Document

Essay Preview

Foreigners' Tax Scheme in Denmark
In 1992, a special taxation scheme was introduced in Denmark for high income foreigner who take up residence in Denmark for a limited period of time, this tax scheme also known as the preferential tax regime or special tax scheme in Denmark. It applicable to all foreigner who sign their contracts for work in Denmark after 1st of June 1991. When this scheme is first introduce, there is a special tax rate on labor earnings of 30% for a maximum period of up to 3 years (36 months). This Foreigners' Tax Scheme is almost twice lower than the regular tax rate where workers with earnings above the scheme threshold would need to paid average income tax rates of around 55% with the absent of the special tax scheme.
The scheme rate was dropped to 25% in 1995, however, a payroll tax of 8% was gradually phased in between year 1994 to 1997. The payroll tax is deductible in the regular income tax, the total scheme rate calculated as 31% from 1997 onwards. This make the total foreigners’ tax scheme rate roughly unchanged from the previous tax scheme rate.
The fo...

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Denmark’s Government System Essays

- The Denmark Government is a constitutional monarchy system. The government of Denmark is based on the parliamentary system and it is representative democratic. The head of government is controlled by the Prime Minister. Denmark is a multi-party system so that there is no single party since the beginning of the 20th century in Denmark. The parties members will be represent their parties in the parliament. Hence, the Danish parliament tends to be more powerful than legislatures in others countries....   [tags: Denmark, Government, history, geography,]

Good Essays
666 words (1.9 pages)

Essay about The Social Security is not a Ponzi Scheme

- Social Security is not the Ponzi scheme some oppositions may advocate. Social insurance, as envisaged by President Roosevelt, would address the permanent problem of economic security for the elder community by creating a work-related, contributory system in which workers would provide for their own future economic security through taxes they paid while employed. It provided an alternative both to reliance on welfare, and to radical changes within the capitalist system. It can be seen as a moderately conservative, yet activist, response to the challenges of the Depression (SSA, 2014)....   [tags: social security act,ponzi scheme,social insurance]

Good Essays
857 words (2.4 pages)

Essay on The Ponzi Scheme Of The Great Gatsby

- Is the lack of education drives humanity to live “bad lives” (Rumble, 2007, p.3) as posit by Ted Honderich, or the highly educated ones cause the lives of some turn bad because of greed as in the case of Madoff by orchestrating one of the biggest Ponzi scheme in the history? Rumble leaned towards Honderich idea of people living bad lives was primarily due to lack of education, and to counteract its negative impacts like poverty, crimes, and the like is to provide a free quality education to all funded by the state government by implementing a redistributive tax law....   [tags: Education, Higher education, School, Ponzi scheme]

Good Essays
1016 words (2.9 pages)

The Madoff Ponzi Scheme Essay

- Introduction Bernie Madoff began his career as an investment broker in 1960, where he legally bought and sold over-the-counter stocks not listed on the New York Stock Exchange (NYSE). From the 1960’s through the 1990’s, Madoff’s success and business grew substantially, mainly from a closed circle of known investors and friends through word of mouth. In the 1990’s Bernard L. Madoff Investment Securities traded up to 10 percent of the NASDAQ on any given day. With the success of the securities business, Madoff started an illegal money-management business, promising his investors consistent returns from 10-12 percent, unheard of returns at the time, which should have tipped off most investors...   [tags: Bernie Madoff, pyramid scheme, scam, con man]

Good Essays
3353 words (9.6 pages)

Tax planning and Tax Avoidance Analysis Essay

- Tax planning is the organizing of financial matters with the ultimate goal of minimizing taxes. Tax planning is done through three processes: reducing income, utilizing tax credits and increasing deductions on finances. Moreover, tax planning involves aligning financial goals in an efficient manner through planning for taxes so as to result in reduction of tax liability. It comprises arranging of finances so as to avail from rebates, deductions and exemptions that are legally permitted by tax laws while reducing tax liability....   [tags: tax credits, tax laws, taxation]

Good Essays
2388 words (6.8 pages)

The Ponzi Scheme Of Ponzi Schemes Essay

- The case that was provided in the Stanwick textbook provided information on the Madoff Ponzi scheme which is said to be the largest of Ponzi schemes in the world. This case was a very interesting case. It showed how Bernard Madoffs massive falsehood created disaster for around 13,600 clients. The impact from Madoff did not end with his clients being impacted but also people far and in between. Madoffs Ponzi scheme was controlled through his company that consisted of his family being the head of the company, friends, and employees....   [tags: Bernard Madoff, Ponzi scheme]

Good Essays
857 words (2.4 pages)

Madoff 's Scheme : Ponzi Scheme Essay

- Madoff’s Scheme “The Whole Government is a Ponzi Scheme” is a quote by Bernard “Bernie” Madoff who was said to have ran the largest Ponzi Scheme in the U.S. Madoff was 71 years old when he was caught for running a Ponzi Scheme. He ran a family business and through that he ran his Ponzi Scheme. He told no one until 10 years after his family business took off. Madoff’s was quite successful in his life, before he made his mistake. His Ponzi Scheme hurt many people who invested in the company, not knowing that it was a swindle all along....   [tags: Ponzi scheme, Bernard Madoff, Charles Ponzi]

Good Essays
1867 words (5.3 pages)

Essay on The Role of Denmark During the holocaust

- The Country of Denmark did something no one could replicate during the holocaust. What they accomplished is something that many nations failed. They managed to save all of their Jewish people during the Nazi campaign. Their story is a bright light in the darkness that was the holocaust. Where many other nations failed, they succeeded. The Country of Denmark managed to save their Jewish people in a way that other nations should have followed in the holocaust. In order to learn about how Denmark managed to save their people, we must first understand the culture behind Jewish-Danish culture and life before the holocaust....   [tags: nazi campaign, danish jews, denmark]

Good Essays
1492 words (4.3 pages)

Essay on The Local Tax Collection Of Progress

- 5.1. The local tax collection in progress Tax policy defined economic policy and has their own principles, can be effective macroeconomic tool impact not only on the budget processes, but also for the whole range of economic problems. In tax policy, like any other policy, it is necessary to clearly define the goals of the current (emergency) and strategic nature and to develop appropriate mechanisms for their implementation. From the point of view of economic growth, the current tax system has not formed its prerequisites....   [tags: Taxation, Tax, Corporate tax, Tax incidence]

Good Essays
867 words (2.5 pages)

Essay about To Tax or Not to Tax?

- To Tax or Not to Tax. Since the recent passage of the Internet Tax Freedom Act, on October 21, 1998, making the Internet tax free, there has been an intense debate on whether to tax or not to tax Internet purchases. The conservative side, also known as the Republicans, is opposed to Internet taxation saying that it is too costly to collect taxes on Internet purchases. They also believe that since Internet retailers do not have a physical presence in every state, why should the state receive sales tax on a nonexistent store in that state....   [tags: Internet Tax Taxation Papers]

Good Essays
1942 words (5.5 pages)