Denmark Board Member Fees Tax Guide (Bestyrelseshonorar)

A-Skat vs B-Income Classification

Board members who are also employees: If you are an employee of the company (e.g., the CEO who also sits on the board), your board fee is treated as A-income — it is added to your salary and taxed through the normal payroll process. The company withholds A-skat and AM-bidrag at source and reports the fee via eIndkomst as part of your ordinary salary. There is no separate treatment — the board fee is simply additional salary. This applies even if the board role is formally separate from the employment role.

Independent board members (non-employees): If you are an independent board member (not an employee of the company), the board fee is classified as B-income. The company pays the fee without withholding tax (no A-skat, no AM-bidrag deducted at source). The board member must: report the fee on their forskudsopgørelse (preliminary income assessment) to ensure correct tax withholding from their other income, and report the actual fee on their årsopgørelse (annual tax assessment). SKAT then calculates the tax due, which is collected through adjustments to the tax card for the following year or through a direct payment. The company must report the fee paid to each board member to SKAT via the eIndkomst system under code 190 (honorar). This is an information return (not a withholding return) — the company reports the amount paid but does not remit tax.

Executive directors (managing director, active owner-manager): If you are a managing director (direktør) who is not an employee but serves as the day-to-day manager, the fee is typically treated as A-income — the company must register as an employer, withhold A-skat and AM-bidrag, and report via eIndkomst. The distinction between an independent board member (bestyrelsesmedlem) and an executive director (direktør) is important: a director has day-to-day management authority, while a board member participates in board meetings and strategic oversight. If you serve as both, the director fee is A-income and the board fee may be B-income (or A-income at SKAT's discretion — it is safer to treat all director-related fees as A-income).

AM-Bidrag (Labour Market Contribution)

Standard rule: Board member fees are subject to AM-bidrag at 8% in almost all cases. For A-income board fees, the AM-bidrag is deducted at source by the company. For B-income board fees, the board member must pay AM-bidrag through their tax assessment — it is calculated by SKAT based on the reported fee and included in the tax bill.

Exception — pensioners: If you receive a Danish state pension (folkepension) or senior pension, AM-bidrag may not apply to your board fee if you are over the state pension age. The exception applies only if the board fee is your only earned income (you have no salary, no self-employment income, and no other A-income subject to AM-bidrag). If you receive any other A-income (e.g., a part-time salary), AM-bidrag applies to all earned income including the board fee. Check your forskudsopgørelse — SKAT will indicate whether AM-bidrag applies. If you are over pension age and receive only board fees, you can apply to SKAT to have AM-bidrag removed from your tax assessment.

Reporting and Compliance

Company obligations: The company paying board fees must: (a) report the fee to SKAT via eIndkomst under code 190 (honorar til bestyrelsesmedlem) within 10 days of payment, (b) include the board member's name, CPR number or SE number, and amount paid, (c) issue an annual statement to each board member showing total fees paid (similar to an annual payslip), and (d) if the board member is classified as A-income, register as an employer for that board member (unless already registered). The company does not need to withhold tax on B-income fees — it simply reports the payment.

Board member obligations: As a board member receiving B-income fees, you must: (a) estimate your expected board fees on your forskudsopgørelse to ensure sufficient tax is withheld from other income (or make voluntary payments), (b) report the actual fees on your årsopgørelse, and (c) pay any remaining tax (including AM-bidrag) based on SKAT's assessment. If you serve on multiple boards, aggregate all fees on your forskudsopgørelse — each board fee is reported separately by the respective companies to SKAT, and SKAT aggregates them on your tax return automatically. If you do not report expected board fees on your forskudsopgørelse, you may face a large tax bill at year-end (since no withholding was done on the fees).

Tax card for board fees: If you have B-income board fees, you should request a B-tax card (B-trukort) for that income. The B-tax card tells SKAT how much tax to collect from your other income or through direct payments. Alternatively, you can make voluntary tax payments (frivillige indbetalinger) via TastSelv throughout the year to avoid a large bill at assessment time. For more on tax cards, see our Tax Card Guide →.

Cross-Border Board Fees

Non-resident board member of a Danish company: If you are a non-Danish resident serving on the board of a Danish company, your board fee is Danish-source income (the source is the location of the company, not where you perform the board work). The company must withhold A-skat at the standard rate (using the default rate of 55% if no tax card is provided) and AM-bidrag at 8% from the fee. The non-resident board member can apply to SKAT for a limited tax liability (begrænset skattepligt) — this reduces the Danish tax to the rate specified in the applicable tax treaty. Under most Danish tax treaties, board fees are taxable only in the country where the company is resident (Denmark) — so the non-resident board member pays Danish tax and claims a foreign tax credit in their home country. However, some treaties (following the OECD Model 2017+) may allocate taxing rights to the board member's country of residence if they perform the board work there. The rules are complex — a binding ruling from SKAT is recommended. For more on treaty rules, see our Tax Treaties Guide →.

Danish resident serving on a foreign board: If you are a Danish resident serving on the board of a foreign company, the board fee is subject to Danish tax as worldwide income. You must report the fee on your Danish tax return. If the foreign company withholds tax on the fee (under local law), you may claim a foreign tax credit in Denmark. Foreign board fees are typically reported as B-income unless the foreign company withholds tax at source (in which case they may be reported as A-income). The foreign company is not required to report to SKAT — the reporting obligation is entirely on you as the Danish resident board member. For more on foreign income reporting, see our Cross-Border Tax Guide →.

Deductions for Board Members

Expenses related to board work: As a board member, you can deduct expenses directly related to your board work: travel costs (mileage at the standard rate, or actual costs), accommodation if you travel to board meetings, professional development (courses, seminars directly related to board duties), membership fees for professional board associations (e.g., Bestyrelsesforeningen), and professional fees (legal, accounting, tax advice related to board duties). The deduction is claimed as a personal deduction on your tax return (field 470–478). You must maintain documentation (receipts, invoices, travel logs) for 5 years. For more on personal deductions, see our Tax Deductions Guide →.

No home office deduction: Board members typically cannot claim a home office deduction because board work is usually performed at the company's premises or through remote meetings. If you have a dedicated home office used exclusively for board work (e.g., you are a professional board member with multiple board seats), you may qualify — but the deduction is limited to ~6,000 DKK/year. For more on home office rules, see our Tax Deductions Guide →.

Related Guides

• Personal Tax Guide → — income tax, deductions, rates
• B-Income Guide → — self-employment, B-income reporting
• Tax Card Guide → — tax cards, B-trukort, voluntary payments
• Employee Benefits Tax Guide → — benefits, company cars, fringe benefits
• Tax Deductions Guide → — all personal deductions
• Cross-Border Tax Guide → — foreign income, foreign tax credit
• Tax Treaties Guide → — board fee articles in treaties