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Denmark Mileage

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Please be aware that this resource is informational only, and many external factors, unique to your company might apply.
Each company must make their own decisions about how they meet their tax obligations.

Table of contents
  1. Mileage

Table of contents
  1. Mileage

Mileage rate for business journeys

An employer in Denmark can reimburse employees for using a personal vehicle for business journeys. An example of a business journey is driving to a client’s office for a client visit.

There are maximum mileage allowances that employers can reimburse tax free.

The following rates apply:

First 20.000 km of the year Above the 20.000 km within the year
Car or motorcycle 2024 DKK 3,79 per km DKK 2,23 per km
2023 DKK 3,73 per km DKK 2,19 per km
Bike or scooter 2024 DKK 0,62 per km DKK 0,62 per km
2023 DKK 0,61 per km DKK 0,61 per km

 

You can pay your employees more than these maximum amounts, however, the excess will be considered taxable income. If you pay less than these amounts, reimbursement is tax-free.

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Learn how you can apply these mileage rates in your Rydoo account here.

Mileage rate for commute

An employee can be entitled to a deduction for transport between home and work. This deduction is only applicable to the days the employee travels to and from work. All means of transportation are accepted, including cards, buses or bikes.

An employee is entitled to this deduction if the following requirements are fulfilled:

  • The distance between home and work should be more than 24 km roundtrip. That means that it should be at least 12 km one-way;
  • Transport is not covered by the employer or there is no company car available to the employee;
  • The employee is not an unpaid intern.

These rates apply:

Transport per day Deduction per km per day for 2024 Deduction per km per day for 2023
0-24 km No deduction No deduction
25-120 km DKK 2,23 DKK 2,19
More than 120 km DKK 1,12 (DKK 2,23 in peripheral municipalities) DKK 1,10 (DKK 2,16 in peripheral municipalities)

 

There are also deduction rates when crossing toll bridges. You can find these deduction rates and more information on the deduction for transport between home and work in general on the Danish Customs and Tax Administration’s website.

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