The interest charged on debt for collection is 7.55 % per year (2022).
Interest is calculated from the first day of the month following the date when the debt was transferred to the Danish Debt Collection Agency. In the event of debt collection fees, interest is calculated from the first day of the month after the debt was incurred, however. You are not liable to pay interest on the interest accrued or interest on court fees and administrative costs.
Any interest charged is paid to the party who is owed money as compensation for the late payment.
Any fees charged in connection with debt being collected, such as a fee for withholding pay, go to the Danish Debt Collection Agency. The same applies to interest on fees.
Overview of interest
Businesses can see their interest in E-tax for businesses at skat.dk/Skattekontoen. If you are a sole proprietorship, you can log on using your private NemID. Otherwise, you will need a NemID employee signature or E-tax password.
In case of debt where the interest rate was agreed by you and your local authority (for instance housing allowance loans), or where the interest rate is expressly stated in a loan document, you will remain liable to pay the agreed rate instead of the debt collection interest rate.
Debt without interest
No interest is added to fines imposed under the Danish Penal Code.
Deduction for debt collection interest
As of 1 January 2020, there is no longer an allowance for the deduction of debt collection interest. This also applies to debt collection interest accrued on debts prior to 1 January 2020.