1. What is CPR?

The Danish Personal Identification Number (it is also called CPR-nummer or personnummer) is a national identification number, which is part of the personal information stored in the Civil Registration System. The number is an integral part of Danish society, and it is virtually impossible to receive any form of government service without one. Even in the private sector one would be hard pressed to receive services without such a number, unless it is minor daily business. The CPR number is used in connection with registration and personal identification, e.g. in connection with salary payment, housing purchases, bank transactions, insurance policies and many other situations.

It is received upon registration with the Civil Registration System, either by birth or by moving to the country. You need to contact your local municipality or commune to secure CPR.

You can find more information about CPR on www.cpr.dk

2. How does Health Care System work in Denmark?

Denmark provides “free” health care to all residents, funded through taxes. There is an optional private health care sector, but it is tiny compared with the vastly larger public system that is used by most of the population. Users pay for a few procedures, such as fertility treatments (from the third attempt onwards) and non-essential cosmetic surgery, as well as most of their own dental care and a portion of prescription medication. Apothecaries are privately owned, but doctors” visits and hospitalization, including tests, treatment, follow-up care, and some medication, are fully covered.

The municipalities are responsible for: preventative health care programmes for children, home nursing, health visitor services, paediatric dental care and in-school health services. The municipalities issue health cards and administer citizens’ choice of doctor and health insurance scheme group.

Anyone who receives a Danish residence permit and a civil registry number (CPR number) is entitled to Danish health insurance. The person will then be issued a health insurance card (‘sundhedskort’) as documentary proof of the right to public healthcare services. The health insurance card acts as an admittance card to the health care system.

You can get more information on health care system in DK by visiting this link:

www.nyidenmark.dk

3. Taxation System in Denmark?

Denmark’s taxes are among the highest in the world. Danish residents are liable for tax on global income and net wealth. Nonresidents are liable only for tax on certain types of income from Danish sources.

The corporate income tax in Denmark is 30%, which must be prepaid during the income tax year to avoid a surcharge.

Personal income tax is collected at state, county and local levels. A tax ceiling ensures that combined income taxes do not exceed 59% of income. Income tax rates are progressive. This means that the last Danish Crown you earn is taxed at a higher rate than the first Crown earned. In practice, progression means that low income earners only pay municipal taxes and bottom-bracket tax to the state, those with slightly higher incomes also pay the middle-bracket tax on the upper part of their income and those with the highest incomes pay municipal tax, bottom-bracket tax, middle-bracket tax and top-bracket tax.

Several kinds of deductions or reductions can be applied to taxable income. There is also a voluntary church tax with an average rate of 0.8%. The social security contribution from employee earnings is 9%, 8% for unemployment insurance and 1% for special pension scheme savings. The voluntary church tax and social security contributions do not count toward the 59% tax ceiling. Tax is withheld at the source. Foreign researchers and key employers may qualify for a gross tax of 25% on their salary instead of paying regular income tax. They are still liable for 9% social security contributions.

To find more information on taxation in Denmark, please see the website of the Ministry of Taxation at www.skm.dk or the website of SKAT at www.skat.dk