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Tax Registration and MitID Setup

Register with SKAT (Danish Tax Authority) and set up your MitID digital identity. Essential for employment, self-employment, and accessing government services.

Tax registration in Denmark

All employed and self-employed individuals in Denmark must register with SKAT (Statens Skatteadministration). SKAT administers income tax, VAT, employment withholding, and all tax-related matters. Registration is automatic for employees but requires specific application for self-employed individuals.

Your tax ID number is unique to your SKAT registration. Employers use this for payroll tax withholding. Self-employed and business owners use it for business registration and VAT. Understanding tax registration and MitID access is essential for financial compliance.

SKAT automatically registers employees through CPR and employer information. Self-employed must apply directly.

Tax registration in Denmark

Understanding SKAT and tax requirements.

  • SKAT authority: Central government agency managing all tax functions.
  • Income tax: Approximately 22 percent national tax plus municipal tax (8-12 percent).
  • Employment tax: Withheld by employers during payroll.
  • VAT: Value-added tax of 25 percent on goods and services.
  • Self-employment tax: Business owners must file quarterly and annual returns.
  • Pension contributions: ATP mandatory employment pension.

Automatic tax registration for employees

If you are an employee, SKAT automatically registers you once your employer reports your employment. Your CPR number becomes your tax identification. Employers withhold income tax from your salary each month.

You do not need to apply separately for employee tax registration. Information flows automatically from employer payroll systems to SKAT. You can access your tax account through MitID to verify withholdings and file tax returns.

Tax registration types

Different registration based on work status.

1

Employee tax registration

Automatic for employed individuals.

  • Employer registers employee with SKAT.
  • CPR number serves as tax ID.
  • Employer withholds income tax each month.
  • SKAT sends annual tax statement.
  • No separate application needed.
2

Self-employment registration

For freelancers and solo business owners.

  • Must apply to SKAT for self-employment status.
  • Receive unique tax ID number.
  • File quarterly VAT returns if applicable.
  • File annual tax return with income and expenses.
  • Can deduct business expenses.
3

Business/company registration

For formal companies and entities.

  • Register with CVR (central business register).
  • Separate tax ID from personal CPR.
  • Company files business tax returns.
  • Directors pay personal tax on dividends.
  • More complex accounting and compliance.
4

VAT registration

Required for certain businesses.

  • Businesses with turnover exceeding threshold required.
  • Monthly or quarterly VAT return filing.
  • Collect and remit 25 percent VAT to SKAT.
  • Can claim VAT on business expenses.

MitID digital identity system

  • Secure identity platform: Government-approved digital authentication system.
  • Created automatically: MitID account opens upon CPR registration.
  • App-based access: Download MitID app for secure two-factor authentication.
  • Online service access: Access all government services including SKAT, MitID portal.
  • Banking integration: Many banks use MitID for online banking authentication.
  • Private sector use: Some private companies and services accept MitID.

Tax registration and MitID setup

  1. 1

    CPR registration

    Complete CPR registration at borgerservice first.

  2. 2

    MitID account creation

    Automatic upon CPR; activate app if desired.

  3. 3

    Employee registration (automatic)

    Employer files with SKAT; you are registered.

  4. 4

    Verify registration

    Log into SKAT through MitID to confirm registration.

  5. 5

    Self-employment application (if applicable)

    Apply directly to SKAT if self-employed.

  6. 6

    Set up digital access

    Download MitID app and set up security.

  7. 7

    Tax account management

    Monitor withholdings and file returns through MitID.

Tax registration timelines

Employee automatic registration

1 to 2 weeks after employer reports

MitID activation

Immediate to 1 week after CPR

Self-employment application

1 to 2 weeks processing

Business registration

1 to 2 weeks after application

Access to SKAT online

1 to 3 days after registration

Accessing SKAT online services through MitID

  • Tax account login: Log into SKAT portal using MitID credentials.
  • Tax return filing: File annual tax return online through SKAT portal.
  • Withholding verification: View monthly tax withholdings from employer.
  • VAT filing: Submit quarterly VAT returns if applicable.
  • Digital dialogue: Communicate with SKAT through secure online messaging.
  • Documents and statements: Download tax statements and certificates.

Tax compliance responsibilities

  • Income reporting: Employers report your income automatically.
  • Expense deductions: Keep receipts and documentation for deductions.
  • Tax return filing: Annual return due typically in May.
  • VAT compliance: File VAT returns if you are subject to VAT.
  • Updated information: Notify SKAT of address or status changes.

Common tax registration challenges

  • SKAT correspondence: Official communications sent by mail in Danish.
  • Withholding verification: Employer may incorrectly calculate withholding.
  • Self-employment complexity: Filing quarterly and annual returns requires bookkeeping.
  • Dual tax residency: May have obligations in both Denmark and home country.
  • VAT threshold: Understanding when VAT registration is required.

How Nordic Relocators Denmark supports tax registration

MitID account setup

Assist with MitID activation and app setup.

SKAT verification

Verify employee registration with SKAT.

Self-employment application

Support self-employed registration process.

Tax ID information

Explain tax ID and how to find it.

Withholding verification

Help review tax withholding accuracy.

Ongoing compliance

Guidance on annual tax filing and compliance.

Frequently asked questions

When am I registered with SKAT?

Employees are automatically registered when employers report employment. Self-employed must apply directly. Registration typically happens within 1 to 2 weeks.

How do I access my SKAT account?

Log into MitID, then access SKAT portal through mitid.dk or skat.dk.

What is my tax ID?

For employees, your CPR number is your tax ID. For businesses, a separate CVR business number is issued.

Do I need to file a tax return?

Employees typically file annual returns. Self-employed and businesses must file. Returns are usually due in May each year.

What if my employer withholds incorrect tax?

Errors are usually corrected through annual tax return. Contact SKAT if you believe withholding is significantly wrong.

Is dual tax residency an issue?

You may have obligations in both Denmark and your home country. Consult tax advisor about treaty implications.

Set up your tax registration

Proper tax registration and MitID access ensure compliance and access to all government services. We guide you through setup and ongoing management.

Get tax registration support

Disclaimer: This provides general information about SKAT registration and MitID. Tax obligations vary by individual circumstances and may include obligations in multiple countries. Always consult qualified tax professionals for specific tax advice.