Here - International Community

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
Property value tax
Inheritance tax
67%
Excise duties
33%
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
- ATP (supplementary labour market pension) __- 45
15,500
- 45
15,455
- AM-bidrag 8% of 15,455 DKK
1,236
Taxable income
14,219
Tax free amount per month
_ 4,188
- Tax 38 % of
10,031
Net payment in the “pocket”
-1,236
3,812
DKK 10,407
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Tax assessment notice (Årsopgørelse)
You need to check and correct if necessary at E-tax
Entitled to a tax return (overpaid tax)?
You have 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
Preliminary income tax
assessment
Salary
Benefits
50.000
12.000
Transport deduction
Interest
-3.000
-4.000
Taxable income
55.000
Bottom bracket tax
Health contribution
Municipality tax
Church tax
Calculated advance
tax
2.000
40
2.500
500
-5.040
March
Tax assessment notice
Salary
Benefits
50.000
12.000
Transport deduction
Interest
-3.000
-4.000
Taxable income
55.000
Bottom bracket tax
Health contribution
Municipality tax
Church tax
2.000
40
2.500
500
Calculated final tax
5.040
Paid advance tax
Overpaid tax
-5.040
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
virksomhed eller udlandsforhold”
(own company or
income from abroad)
4. Click “OK”
5. Scroll down and click on the blue arrow
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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
.page
Tax
assessment
notice
Preliminary
income
assessment
Payment
Personal tax
information
Tax assessment notice
Your tax for 2015 and previous years
Vehicles
Property value
Contact
Profile
Help
Change your email/mobile
Preliminary income assessment (tax card)
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 - only
for those of you who
have foreign income
or income from your
own company.
No later than 1 July
Complete your tax
return online for
ordinary taxation –
no later than 1 May
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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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