Bruttolønsordning – DTU Business

Bruttolønsordning – DTU Business

Here’s how you can finance your Executive MBA at DTU Business using the Gross Income tax credit. By not using the Gross Income Tax Credit you would first pay taxes on your gross income and thereafter finance your Executive MBA by paying your tuition out of your net income. By using the Gross Income Tax Credit your company pays for your Executive MBA in exchange for you taking a pay cut corresponding to the cost of your education. This means that you will pay taxes on a lower gross income and it doesn’t cost your company anything. DTU’s Executive MBA is divided into 4 semesters, each invoiced at 95,000 Dkr. There is 1 semester in the 1st and 3rd years and 2 semesters in the 2nd year. It’s up to you and your company to figure out how to divvy up the costs of your Executive MBA. This example is based on you and your company splitting the costs evenly and you being taxed at the top rate of 56%. In the first year an invoice of 95,000 Dkr will be sent. Your share will be 47,500 Dkr. The Gross Income Tax credit allows you to write off 26,600 Dkr. Leaving you with a net cost of 20,900 Dkr for the first year. If you sign up for the Gross Income Tax Credit before the calendar year you start, you can spread your costs over 12 monthly payments of 1,742 Dkr. There are 2 semesters in the 2nd year and your costs will therefore double. This also means that you can double your write-off to end with a net cost of 41,800 Dkr for the year. When spread out over the year you will have 12 monthly payments of 3,483 Dkr. The 3rd year will be the same as the 1st year, so by using the Gross Income Tax Credit you will again save 26,600 Dkr and end up with a net cost of 20,900 Dkr that, when spread out over the year, results in 12 payments of 1,742 Dkr. If you would like to hear more about financing your Executive MBA using the Gross Income Tax Credit contact Program Director Peter Arbs at 20 29 25 10. Looking forward to seeing you at DTU Business.

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About the Author: Oren Garnes

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