Church Tax In Denmark: A Simple Guide
Ever wondered why a portion of your paycheck in Denmark goes to the church? You’re not alone. We’ve got you covered for this!
The Danish church tax, or “kirkeskat,” can be a head-scratcher for many expats. In this quick guide, we’ll break down what this tax is, why it exists, and how it affects you. Let’s dvelve into the fascinating world of Denmark’s unique church tax system.
Let’s dive in!
What Is Church Tax?
Denmark’s income tax is broken down into several parts. There are two types of state taxes: labor market tax (AM-bidrag), municipal tax (kommuneskat), and primary and top tax (bundskat and topskat).
Additionally, there is an optional church tax known as kirkeskat. Although the actual rate varies by municipality, it typically hovers around 0.87 percent.
When you join the Danish national church, the Evangelical Lutheran Church, also known as Folkekirken in Danish, you must pay this church tax.
How Many People Pay Church Tax In Denmark?
Statistics Denmark reports that, of the country’s 5,932,654 residents, 4,276,271 are officially registered as members of the Church of Denmark (Folkekirken).
This indicates that roughly 72% of Danes pay church tax and are National Church members.
Over the past ten years, church attendance in Denmark has not decreased, even though many surveys indicate that fewer than 25% of Danes consider themselves “very religious.”
However, in 2016, the number of persons quitting church increased due to a national marketing effort launched by the nation’s atheist association.
How Do You Become A Church Member?
After being baptized, you join the Danish church, Folkekirken. If you are already a member of an Evangelical Lutheran church outside of Denmark, you will instantly become a member upon moving here.
If you were baptized in a different church, you can join that church by completing an application at your neighborhood church.
It is not necessary to be a citizen of Denmark to join the church. However, concurrent membership in the Evangelical Lutheran Church and another religious organization is prohibited.
Teens fifteen years of age or older decide to either quit the church or get baptized and become members.
While anybody can attend a church service in Denmark, you need to be a member of the Danish church and pay your voluntary church tax to host an event like a baptism, wedding, or burial.
Being a member exempts you from paying the church for a funeral or wedding.
For this reason, a large portion of the Danish population is a member and supports the upkeep of the churches, some of which are Middle Ages-era structures.
To get married in Denmark, at least one partner must be a Danish church member. Generally speaking, you can only be buried in a church with a priest present if you are a member when
If you are not a church member, you are not eligible to vote or run for parish council.
How Does Being A Member Of The Church Affect Your Taxes?
Following confirmation of your membership by the church, your information is updated in the central person’s register (CPR) and the national record.
Your church tax is deducted automatically from your monthly income and appears as kirkeskat on your payslip.
The precise rate varies for each municipality, although Folkekirken states it typically stands at 0.87 percent. It is computed using your entire revenue.
Young individuals and children who do not pay taxes are not required to pay membership fees.
There are over 2,000 graves and 2,400 churches in Denmark. The church tax funds the operation and upkeep of the municipality’s churches.
Along with other activities and community services, it guarantees that local churches nationwide hold a service every Sunday.
You can decide anytime to end your church membership and tax. You can do this by submitting a form to your parish church. This can be done in person or writing.
Conclusion
Understanding the church tax in Denmark can save you from unexpected surprises on your paycheck. Whether you’re a believer or not, knowing where your money goes and how to manage this tax is crucial for all expats.
Tax Tackled!
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