medborger_i_danmark_engelsk.pdf - Ny i Danmark

99In addition to the above tax allowances,every individual can claim a specialpersonal allowance not related to anyparticular expense.Some of these allowances are oftenreported to the tax authorities in advance.However, many people must themselvesinform the tax authorities of some of theirdeductible expenses.The amount of tax payable by theindividual citizen depends on his or herincome, property and deductible expenses.Furthermore, tax rates vary from onemunicipality or county to the next.Denmark has a progressive tax system.This means that the higher your income,the higher your tax rate. The underlyingidea of this system is that those with thebroadest shoulders should carry thebroader burden.Tax ratesProgressive tax systemECONOMY AND CONSUMPTIONFinancing the welfare stateThe cornerstone of the Danish welfare modelis that those with the ability must supportthemselves and their families and contributeto the community through taxes.One of the objectives of the Danish taxsystem is to maintain a level of services thatensures reasonable living conditions for allcitizens – regardless of their general financialsituation.Tax revenues are allocated, for example, tothe health service, education and research,road and railway construction, the defenceforce, environmental improvements and socialservices, such as state pensions, cash benefitsand special assistance for those findingdifficulty managing on their own.