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Employees should in principle be taxed on the market value of employee benefits from their employer, however, there are exceptions.
Employees who receive employee benefits from their employer are generally required to be taxed on the market value of the benefit. However, there are exceptions for employee benefits that fall under de minimis threshold and benefits that have been made tax-free.
Several rates for employee benefits have been adjusted for 2025. Please see below.
De minimis threshold for minor employee benefits
The de minimis threshold for minor employee benefits has been adjusted to DKK 1,400 (DKK 1,300 in 2024) in 2025.
This means that employees who receive such minor employee benefits (e.g., Christmas gifts, cinema tickets, a box of chocolates, etc.) will not be taxed on them if the total value does not exceed DKK 1,400.
Employers are not required to report such minor benefits, even if the threshold is exceeded. However, if the value of an individual benefit exceeds the threshold, it must be reported.
If the threshold is exceeded, it is generally the employee's responsibility to declare the total value of the benefits on their tax return.
Christmas gifts
An employer's Christmas gifts to employees are included in the above de minimis threshold.
However, if an employee receives a Christmas gift from their employer, the gift is not taxed if its value does not exceed DKK 1,000 in 2025 (DKK 900 in 2024). This applies even if the total value of minor employee benefits during the year exceeds DKK 1,400.
For example, if an employee receives a Christmas gift with a market value of DKK 1,000 and another employee benefit valued at DKK 500, taxation must occur for the DKK 500, as the total value of employee benefits exceeds the de minimis threshold of DKK 1,400 in 2025. However, the Christmas gift is tax-free, as it does not exceed the threshold of DKK 1,000.
De minimis threshold for work-related employee benefits
The de minimis threshold for taxation of employee benefits provided by the employer with a direct connection to work has been adjusted to DKK 7,300 in 2025 (DKK 7,000 in 2024). Therefore, the employer is generally only taxed if the total value of such benefits exceeds this amount.
Examples of work-related employee benefits:
- Free food during excessive work
- Influenza vaccination
- Clothing, if specifically requested and paid for by the employer with a name and logo
- Free newspaper for work purposes
- Free public transportation, provided for business transport purposes
- Credit cards provided for business purposes
If the threshold of DKK 7,300 is exceeded, the employee is taxed on the entire value.
Employers are not required to report work-related benefits, so if the threshold is exceeded, it is the employee's responsibility to declare the total value of the benefits on their annual tax assessment.
Company car
The rules for calculating the taxable value of a company car are adjusted once again in 2025.
In 2024, the annual taxable value of a company car is calculated as 23.0 pct. of the value of the car up to DKK 300,000, and 22.0 pct. of the value above DKK 300,000. However, the car's taxable value is calculated at a minimum of DKK 160,000.
From 2025, the annual taxable value of a company car is calculated as 22.5 pct. of the entire value of the car. There is no longer a distinction for prices up to DKK 300,000 and prices above DKK 300,000. The 22.5 pct. must still be calculated on a minimum of DKK 160,000.
In calculating the taxable value of a company car, an environmental surcharge is added, which in 2024 corresponds to 600 pct. of the annual CO2 ownership tax for the company car. From 2025, the environmental surcharge increases, as it will be calculated as 700% of the annual CO2 ownership tax.
Company phone
The taxable value of a company phone is also adjusted, so that in 2025 it amounts to DKK 3,300 (DKK 3,200 in 2024). This corresponds to DKK 275 per month.
Cohabiting spouses who are both taxed on a company phone can each receive a 25 pct. reduction if the total value of the company phone is at least DKK 4,400 in 2025 (DKK 4,200 in 2024).
The 25 pct. reduction is calculated automatically when issuing the annual tax assessment for the respective income year.
For further questions, you are always welcome to contact us.
Summary
Employees are taxed on the market value of fringe benefits, with exceptions for de minimis thresholds and other tax-free benefits. In 2025, the de minimis threshold for minor benefits is DKK 1,400 and for work-related benefits DKK 7,300. Christmas gifts are tax-free up to DKK 1,000. Company cars are taxed at 22.5 pct. of the car's value, and company phones are taxed at DKK 3,300 annually.