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Taxation in

Denmark
Spring 2016
Programme

• The Danish Tax System

• Preliminary income tax assessment (forskudsopgørelse)

• Tax assessment notice (årsopgørelse)

• Most common deductions

• Online shopping

• NemKonto (“Easy Account”)

• Skat.dk – how to look for information

• E-Tax (TastSelv)
Change ”Årsopgørelsen” (tax assessment notice)
Change ”Forskudsopgørelsen” (preliminary income tax assessment)
View ”Skatteoplysninger” (personal tax information)

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The Danish Tax System

The Danish tax system is a complicated matter of rules and laws. You do
not need to be familiar with all of these rules and laws, but it is important
that you know what you need to do in relation to your tax.

You can find important information on how to pay tax in Denmark at:
skat.dk/English

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The Danish Tax System

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The Danish Tax System

Direct taxes Indirect taxes


Personal income tax VAT
Corporate and fund tax Green taxes
67% 33%
Property value tax Excise duties
Inheritance tax Custom duties
Labour market contribution

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Direct taxes (withholding rate)

3 tax percent
Tax to the municipality
Church-tax (optional tax)
Health contribution

2 types of tax to the State


Bottom-bracket tax
Top-bracket tax (DKK 467,300)

Personal allowance
under 18 years DKK 33,000
above 18 years DKK 44,000

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Green taxes

Green taxes are taxes that you pay for spending society's resources.
The more resources you spend, the more green taxes you must pay.

For example, green taxes are electricity, water


and waste.

Compensation for higher green taxes


( the ”green cheque”) DKK 950, the amount will be reduced if your exceeds
DDK 379,900 after deduction of 8 % labour market contributions.

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Preliminary income tax assessment – tax card

Three types of tax cards

• Tax exemption card (frikort) – if your income is low

• Primary tax card (hovedkort)

• Secondary tax card (bikort)

You always have to pay labour market contribution (AM-bidrag).


It is 8% of your total income

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Tax exemption card
(no tax other than Labour market contributions - AM-bidrag)

Preliminary income tax assessment

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Primary tax card (hovedkort)

Preliminary income tax assessment

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Tax calculation – an example

Salary per month DKK 15,500 15,500

- ATP (supplementary labour market pension) __- 45 - 45

15,455

- AM-bidrag 8% of 15,455 DKK 1,236 -1,236

Taxable income 14,219

Tax free amount per month _ 4,188

- Tax 38 % of 10,031 3,812

Net payment in the “pocket” DKK 10,407

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Tax assessment notice (Årsopgørelse)

You need to check and correct if necessary at E-tax

You have overpaid tax 


Entitled to a tax return (overpaid tax)?
You will get money from SKAT
+ compensation 0,5 %
or

You have outstanding tax 


You have to pay (outstanding tax) You must pay money to SKAT.
+ interest 3,0 %

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Tax assessment notice (Årsopgørelse)
November March
Preliminary income tax Tax assessment notice
assessment

Salary 50.000
Salary 50.000 Benefits 12.000
Benefits 12.000
Transport deduction -3.000
Transport deduction -3.000 Interest -4.000
Interest -4.000
Taxable income 55.000
Taxable income 55.000 Bottom bracket tax 2.000
Bottom bracket tax 2.000 Health contribution 40
Health contribution 40 Municipality tax 2.500
Church tax 500
Municipality tax 2.500
Church tax 500 Calculated final tax 5.040
Calculated advance
tax -5.040 Paid advance tax -5.040
Overpaid tax 0

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Most common deductions

• Deduction for transport between home and work – box 51

• Travelling expenses max. DKK 26,200 – box 53

• Child support – box 56 – form 04.071

• Interest expenses to the bank – box 42 – box locked in tax assessment notice

• Interest expenses to mortgage – box 41 - box locked in tax assessment notice

• Trade union fee max. DKK 6,000 – box 50 - box locked in tax assessment notice

• Unemployment insurance – box 52 - box locked in tax assessment notice

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Tax assessment notice – FAQ about deductions

Deduction for transport between home and work

You get deduction for transport between home and work if the distance you
travel between your home and your workplace is more than 24 km a day.

It is not possible to claim tax-free transport allowance


and deduction for transport between home and work
for the same distance.

If your employer pays for your travelling there is nothing to declare in box 51.

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Transport deductions
- between home and work

Rates for 2016


0- 24 km No deduction
25-120 km DKK 1.99 per km
> 120 km DKK 1.00 per km

Rates for 2015


0- 24 km No deduction
25-120 km DKK 2.05 per km
> 120 km DKK 1.03 per km

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Tax assessment notice – FAQ about deductions

Travel deduction or tax-free allowance – only if temporary employment or


more than 24 hours away from home because of work – Box 53

Your employer does not cover your expenses as per account rendered or as
free food and/or free accommodation and the employer does not disburse a
tax-free travel allowance.

The distance and the work involved are also essential elements.

The distance is assessed based on whether you can travel between your
home and the temporary workplace within a reasonable period of time,
enabling you to stay the night at your own home.

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Deductions
- Travel expenses

Rates for 2016 Up to a maximum of DDK 26,200


Food DDK 477 per day (24 hours)
Accommodation DDK 205 per day (24 hours)

Rates for 2015 Up to a maximum of DDK 25,900


Food DDK 471 per day (24 hours)
Accommodation DDK 202 per day (24 hours)

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Online shopping EU country and non-EU country

You do not pay customs duties and Danish VAT


on products from an EU country.

You must pay Danish VAT if you buy


products for more than DKK 80 which
are shipped from a non-EU country.

You must pay customs duties if you buy


products for more than DKK 1,150 which
are shipped from a non-EU country.

You must always pay customs duties,


Danish VAT and special duties on spirits,
wine, beer, tobacco products, perfume and
eau de toilette bought outside the EU.

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NemID

You need a NemID (Easy ID). NemID is your digital signature and the key to
digital Denmark. It is a single login for Danish Internet banks and government
websites.

You can obtain NemID at

• Your bank

• Citizen Service Centre


(Borgerservice)

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Easy account (NemKonto)

You need a NemKonto (Easy Account) for payments from


the public sector. This may be a Danish current account or
your foreign bank account registered as your NemKonto.

You can get NemKonto in one of the following ways:

• Contact your bank and inform them which account to


assign as your NemKonto.

• Assign an account number yourself at NemKonto


selvbetjening. You can only do this if you have a NemID.

• If you live abroad and wish to assign a foreign bank


account as your NemKonto you can use
NemKonto‘s registration form, which you find
at Nemkonto.dk – Choose “English & Deutsch”.

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skat.dk – how to look for information

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skat.dk – how to look for information

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E-tax

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Do it yourself (TastSelv menu)

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Do it yourself (TastSelv menu)

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Do it yourself (TastSelv menu)

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Tax assessment notice (årsopgørelse)

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Deduction for transportation

• Log on E-tax ”TastSelv”


• Choose ”Ret årsopgørelsen”
• Click on ”Befordring (kørselsfradrag)”
(If the calculation is OK; click on ”Gå tilbage
til årsopgørelsen”
- or
• Click ”Ret” (Change)
• Fill in the boxes
• Click ”Overfør beløb” (Transmit)
• Click ”Godkend” (Accept)
• Click ”Fortsæt” (Continue)

You can see your new tax


assessment notice immediately

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Income from abroad
If you have any income from abroad or a property abroad while staying in
Denmark, and you are subject to full tax liability in Denmark, you also have to
inform SKAT

1. Log on and choose:

3. Click “Fortsæt” (continue)


2. Scroll down to “Egen 4. Click “OK”
virksomhed eller udlandsforhold”
(own company or 5. Scroll down and click on the blue arrow
income from abroad)

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Income and/or property from abroad

Fill in the boxes,


click “Godkend”
(Accept)

Click “Retur”

Click “Godkend”
(Accept)
Click “Fortsæt”
(Continue)

You can now see your


new tax assessment
notice

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Preliminary income tax assessment (forskudsopgørelsen)

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Preliminary income tax assessment (forskudsopgørelsen)

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Preliminary income tax assessment (forskudsopgørelsen)

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Personal tax information (skatteoplysninger)

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Personal tax information (skatteoplysninger)

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Personal tax information (skatteoplysninger)

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View your E-tax card

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Translation of front page of TastSelv / E-tax

Log
off

Main Tax Preliminary Payment Personal tax Vehicles Property value Contact Profile Help
.page assessment income information
notice assessment Change your email/mobile

Tax assessment notice


Preliminary income assessment (tax card)

Your tax for 2015 and previous years The tax you pay during 2016

View the tax assessment 2015 Preliminary income assessment 2016

Change the tax assessment notice/ tax return 2015 Search your earned income this year

Pay outstanding tax

Report deduction for wage costs in connection with


household services servicefradrag/håndværkerfradrag

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Important times during the Tax year

See or change your


preliminary income
assessment for the
year to come

Complete your tax


return online for
ordinary taxation –
Complete your tax no later than 1 May
return online - only
for those of you who
have foreign income
or income from your
own company.
No later than 1 July

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3 good links – borger.dk – e-boks.dk – skat.dk

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Contact information

- You are always welcome to contact us

• Skat.dk

• Telephone: 72 22 18 18

• Foreign tax: 72 22 28 92

• Personal meeting – by appointment only

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