Taxation in Denmark is known for its high rates, which fund a comprehensive welfare system. The tax structure includes income tax, value-added tax (VAT), and various other taxes. Individuals pay a progressive income tax, where higher earners contribute a larger percentage of their income. The Danish VAT is set at 25%, one of the highest in the world, applied to most goods and services. Corporate taxes are also significant, with a standard rate of 22%. Overall, the taxation system aims to promote social equality and provide extensive public services, including healthcare and education.