DOCSLIB.ORG

Taxation in Denmark

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Taxation in Denmark 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) 21-04-2016 2 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 21-04-2016 3 The Danish Tax System 21-04-2016 4 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 21-04-2016 5 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 21-04-2016 6 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. 21-04-2016 7 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 21-04-2016 8 Tax exemption card (no tax other than Labour market contributions - AM-bidrag) Preliminary income tax assessment 21-04-2016 9 Primary tax card (hovedkort) Preliminary income tax assessment 21-04-2016 10 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 21-04-2016 11 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 % 21-04-2016 12 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 21-04-2016 13 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 21-04-2016 14 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. 21-04-2016 15 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 21-04-2016 16 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. 21-04-2016 17 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) 21-04-2016 18 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. 21-04-2016 19 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) 21-04-2016 20 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”. 21-04-2016 21 skat.dk – how to look for information 21-04-2016 22 skat.dk – how to look for information 21-04-2016 23 E-tax 21-04-2016 24 Do it yourself (TastSelv menu) 21-04-2016 25 Do it yourself (TastSelv menu) 21-04-2016 26 Do it yourself (TastSelv menu) 21-04-2016 27 Tax assessment notice (årsopgørelse) 21-04-2016 28 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 21-04-2016 29 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) 21-04-2016 30 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 21-04-2016 31 Preliminary income tax assessment (forskudsopgørelsen) 21-04-2016 32 Preliminary income tax assessment (forskudsopgørelsen) 21-04-2016 33 Preliminary income tax assessment (forskudsopgørelsen) 21-04-2016 34 Personal tax information (skatteoplysninger) 21-04-2016 35 Personal tax information (skatteoplysninger) 21-04-2016 36 Personal tax information (skatteoplysninger) 21-04-2016 37 View your E-tax card 21-04-2016 38 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 21-04-2016 39 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.
Load more

Recommended publications
  • Global Guide to M&A
    GLOBAL GUIDE TO M&A TAX 2018 EDITION CONTENTS FOREWORD ...........................................................................................................................................................................3 COUNTRY OVERVIEWS .....................................................................................................................................................5 ARGENTINA ..........................................................................................................................................................................6 AUSTRIA .................................................................................................................................................................................19 BELGIUM .............................................................................................................................................................................. 32 BRAZIL ................................................................................................................................................................................. 42 CANADA ............................................................................................................................................................................... 51 CHILE ....................................................................................................................................................................................61 COLOMBIA ..........................................................................................................................................................................70
    [Show full text]
  • Step-By-Step Guide to Opening a Business in Denmark
    MINISTRY OF FOREIGN AFFAIRS OF DENMARK Invest in Denmark 2019 STEP-BY-STEP GUIDE TO OPENING A BUSINESS IN DENMARK www.investindk.com STEP-BY-STEP GUIDE TO OPENING A BUSINESS IN DENMARK Setting up or expanding your business is easy in Denmark. Just follow this step- by-step guide to an efficient start to your business operations. If you need further assistance, Invest in Denmark is ready to support you. Our one-stop service is free and confidential. Get in touch if you need help with get- ting started. We can also introduce you to our service provider network, which can assist with specific requirements. For a more detailed de- scription of legal entities, please go to ‘How to set up a business in Den- mark’, which is available at investindk.com and download our fact sheet. 2 | Denmark – best for business based on trust STEP 1 Choose which type of legal entity is the best fit for your goals and activities in Denmark. There are several types of company structure in Denmark. We recom- mend that foreign companies set themselves up as an Anpartsselskab (APS), which is a private limited liability company. This will give you the best protection. Denmark – best for business based on trust | 3 STEP 2 Register your company Every company in Denmark must be registered online with the Danish Business A company must be Authority (DBA). This will provide your company with a CVR number (Central registered with the Company Register Number), which is always used when communicating with public authorities. It costs approximately EUR 100 to register your company at DBA within 14 days indberet.virk.dk of the memorandum of association being A company must be registered with the DBA within 14 days of the memoran- signed.
    [Show full text]
  • PDF Download
    Doing Business in Denmark k u . o c . e d i u G s s e n i s u B g n i o D . k r a m n e D . w w Nyhavn, Denmark w www.Denmark.DoingBusinessGuide.co.uk Visit the Website and download the free Mobile App MAIN PRACTICE AREAS Lundgrens’ specialised client teams provide services • FINANCE & CAPITAL MARKETS across multiple legal areas and languages. • M&A Making us your gateway into Denmark and the • PUBLIC LAW • REAL ESTATE entire Nordic Region. • TAX Lundgrens is one of Denmark’s leading law firms. OTHER PRACTICE AREAS We assist Danish and foreign companies, financial • COMPETITION, PUBLIC PROCUREMENT & STATE AID institutions, private equity funds, organisations and • CORPORATE AND COMMERCIAL public institutions within our Practice Areas. • DATA PROTECTION We make it our business to understand our clients’ • DISPUTE RESOLUTION • EMPLOYMENT & LABOUR LAW industries, practical challenges and principal goals, • ENVIRONMENT & ADMINISTRATIVE LAW and focus on advice that benefit the client’s overall • INSOLVENCY & RESTRUCTURING business case. • INSURANCE AND DAMAGES • INTELLECTUAL PROPERTY • IT LUNDGRENS.DK CONTENTS 9 Denmark overview 11 Welcome from Lesley Batchelor OBE, FIEx (Grad) – Director General, Institute of Export 13 Foreword by Dominic Schroeder, British Ambassador to Denmark 15 Welcome from Vagn Thorup, Chairman of the Board, British Chamber of Commerce in Denmark & Senior Partner of the law firm Lundgrens 25 Why Denmark? 17 About the Department for International Trade (DIT) 18 UK Export Finance: clearing your path to trade 23 About this
    [Show full text]
  • Taxation and Investment in Denmark 2015 Reach, Relevance and Reliability
    Taxation and Investment in Denmark 2015 Reach, relevance and reliability A publication of Deloitte Touche Tohmatsu Limited Contents 1.0 Investment climate 1.1 Business environment 1.2 Currency 1.3 Banking and financing 1.4 Foreign investment 1.5 Tax incentives 1.6 Exchange controls 2.0 Setting up a business 2.1 Principal forms of business entity 2.2 Regulation of business 2.3 Accounting, filing and auditing filing requirements 3.0 Business taxation 3.1 Overview 3.2 Residence 3.3 Taxable income and rates 3.4 Capital gains taxation 3.5 Double taxation relief 3.6 Anti-avoidance rules 3.7 Administration 3.8 Other taxes on business 4.0 Withholding taxes 4.1 Dividends 4.2 Interest 4.3 Royalties 4.4 Branch remittance tax 4.5 Wage tax/social security contributions 5.0 Indirect taxes 5.1 Value added tax 5.2 Capital tax 5.3 Real estate tax 5.4 Transfer tax 5.5 Stamp duty 5.6 Customs and excise duties 5.7 Environmental taxes 5.8 Other taxes 6.0 Taxes on individuals 6.1 Residence 6.2 Taxable income and rates 6.3 Inheritance and gift tax 6.4 Net wealth tax 6.5 Property tax 6.6 Social security contributions 6.7 Other taxes 6.8 Compliance 7.0 Labor environment 7.1 Employee rights and remuneration 7.2 Wages and benefits 7.3 Termination of employment 7.4 Labor-management relations 7.5 Employment of foreigners 8.0 Deloitte International Tax Source 9.0 Office locations Denmark Taxation and Investment 2015 1.0 Investment climate 1.1 Business environment Denmark is a parliamentary democracy.
    [Show full text]
  • Tax Policy Reforms in Denmark
    25*$1,6$7,21Ã)25Ã(&2120,&Ã&223(5$7,21Ã$1'Ã'(9(/230(17Ã Ã 7D[3ROLF\5HIRUPVLQ'HQPDUN Ã &(175(Ã)25Ã7$;Ã32/,&<Ã$1'Ã$'0,1,675$7,21Ã 1. TAX POLICY REFORMS IN DENMARK 1.1 Tax structure and trends The tax-to-GDP ratio of Denmark has been relatively constant during the last 15 to 20 years fluctuating around 48-50 per cent, as can be seen from figure 1.1. In 2004 the tax burden increased to 49.7 per cent of GDP (it was 49.0 per cent in 2003) as economic performance was better than expected. Since the second half of the 1980s, the tax burden in Denmark has been relatively constant while it increased sharply in the period from 1965 to 1988. During the latter period the tax burden increased from around 30 to 50.4 per cent of GDP or approximately 0.8 percentage points per year on average. Only Sweden with a tax-to-GDP ratio of 50.8 per cent has a higher tax burden than Denmark. In 2002, the EU-average is 40.6 per cent while the OECD-average is 36.3 per cent. As illustrated in table 1.1, not only the overall tax burden but also the tax structure in Denmark differs from the EU- and OECD-average. More than half of the total tax revenue in Denmark comes from personal income taxation. On the other hand, social security contributions are not widely used in Denmark. Most OECD countries put a more equal weight on personal income taxes and social security contributions.
    [Show full text]
  • A Global Compendium and Meta-Analysis of Property Tax Systems
    A Global Compendium and Meta-Analysis of Property Tax Systems Richard Almy © 2013 Lincoln Institute of Land Policy Lincoln Institute of Land Policy Working Paper The findings and conclusions of this Working Paper reflect the views of the author(s) and have not been subject to a detailed review by the staff of the Lincoln Institute of Land Policy. Contact the Lincoln Institute with questions or requests for permission to reprint this paper. [email protected] Lincoln Institute Product Code: WP14RA1 Abstract This report is a global compendium of significant features of systems for recurrently taxing land and buildings. It is based on works in English, many of which were published by the Lincoln Institute of Land Policy. Its aim is to provide researchers and practitioners with useful infor- mation about these sources and with facts and patterns of system features, revenue statistics, and other data. It reports on systems in 187 countries (twenty-nine countries do not have such taxes; the situation in four countries is unclear). Accompanying the report are an Excel workbook and copies of the works cited when available in digital form. Keywords: Tax on property, recurrent tax on immovable property, property tax, real estate tax, real property tax, land tax, building tax, rates. About the Author Richard Almy is a partner in Almy, Gloudemans, Jacobs & Denne, a US-based consulting firm that works exclusively in property tax administration, chiefly for governments and related insti- tutions. Mr. Almy began his career as an appraiser with the Detroit, Michigan, Board of Asses- sors. Later he served as research director and executive director of the International Association of Assessing Officers (IAAO).
    [Show full text]
  • Environmental Taxation and EU Environmental Policies
    EEA Report No 17/2016 Environmental taxation and EU environmental policies ISSN 1977-8449 EEA Report No 17/2016 Environmental taxation and EU environmental policies Cover design: EEA Cover photo: © AlexSava (www.istockphoto.com) Small photos: © JacobH (www.istockphoto.com) Layout: Pia Schmidt Legal notice The contents of this publication do not necessarily reflect the official opinions of the European Commission or other institutions of the European Union. Neither the European Environment Agency nor any person or company acting on behalf of the Agency is responsible for the use that may be made of the information contained in this report. Copyright notice © European Environment Agency, 2016 Reproduction is authorised provided the source is acknowledged. More information on the European Union is available on the Internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2016 ISBN 978-92-9213-755-7 ISSN 1977-8449 doi:10.2800/296823 European Environment Agency Kongens Nytorv 6 1050 Copenhagen K Denmark Tel.: +45 33 36 71 00 Web: eea.europa.eu Enquiries: eea.europa.eu/enquiries Contents Contents Authors and acknowledgements .............................................................................................. 4 Executive summary .................................................................................................................... 5 1 Introduction ........................................................................................................................... 6 2 Market-based instruments
    [Show full text]
  • Inheritance and Wealth Taxation in Sweden
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Waldenström, Daniel Article Inheritance and Wealth Taxation in Sweden ifo DICE Report Provided in Cooperation with: Ifo Institute – Leibniz Institute for Economic Research at the University of Munich Suggested Citation: Waldenström, Daniel (2018) : Inheritance and Wealth Taxation in Sweden, ifo DICE Report, ISSN 2511-7823, ifo Institut - Leibniz-Institut für Wirtschaftsforschung an der Universität München, München, Vol. 16, Iss. 2, pp. 8-12 This Version is available at: http://hdl.handle.net/10419/181274 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu FORUM Daniel Waldenström cusses what we know about the relationship between wealth taxation, wealth accumulation and offshore tax Inheritance and evasion.
    [Show full text]
  • Henrik Yde Andersen ESSAYS on DEBT and PENSIONS
    Essays on Debt and Pensions Yde Andersen, Henrik Document Version Final published version Publication date: 2018 License CC BY-NC-ND Citation for published version (APA): Yde Andersen, H. (2018). Essays on Debt and Pensions. Copenhagen Business School [Phd]. PhD series No. 18.2018 Link to publication in CBS Research Portal General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. Take down policy If you believe that this document breaches copyright please contact us ([email protected]) providing details, and we will remove access to the work immediately and investigate your claim. Download date: 30. Sep. 2021 COPENHAGEN BUSINESS SCHOOL ON DEBT AND PENSIONS ESSAYS SOLBJERG PLADS 3 DK-2000 FREDERIKSBERG DANMARK WWW.CBS.DK ISSN 0906-6934 Print ISBN: 978-87-93579-82-8 Online ISBN: 978-87-93579-83-5 Henrik Yde Andersen ESSAYS ON DEBT AND PENSIONS Doctoral School of Economics and Management PhD Series 18.2018 PhD Series 18-2018 Essays on Debt and Pensions Henrik Yde Andersen Supervisor: Svend Erik Hougaard Jensen PhD School in Economics and Management Copenhagen Business School Henrik Yde Andersen Essays on Debt and Pensions 1st edition 2018 PhD Series 18.2018 © Henrik Yde Andersen ISSN 0906-6934 Print ISBN: 978-87-93579-82-8 Online ISBN: 978-87-93579-83-5 The PhD School in Economics and Management is an active national and international research environment at CBS for research degree students who deal with economics and management at business, industry and country level in a theoretical and empirical manner.
    [Show full text]
  • Environmental Taxation Without Damaging Competitiveness
    European expert platform on environmental taxation and green fiscal reform Environmental taxation without damaging competitiveness Environmental taxes raise tax revenues, increase energy efficiency and reduce emissions and environ- mental damage. However, many countries are reluctant to implement them, fearing negative impacts on competitiveness. Here we present the lessons learned from Denmark. Denmark is one of the most energy efficient economies in the world. In 1996, it became one of the first countries in Europe to introduce a CO2-tax on top of existing energy taxes and to subject the business sec- tor to a reduced rate of CO2-tax. I Competitiveness effects Two in-depth governmental reviews conducted in 1999 and 2011 concluded that the Danish CO2-tax re- duced CO2-emissions substantially, and that energy intensity decreased 22% from 1990 to 2008 (Danish Ministry of Taxation and Competitiveness, 2011). They also concluded that The CO2 tax has helped to make Denmark one of the most energy efficient economies in the world, as shown in the table below. Energy intensity per unit produced in industrial countries Both reviews concluded that the widespread use of green taxes does not have a negative impact on overall competitiveness. Indeed, they highlighted the possibility of increasing tax rates substantially without im- pacting on general competitiveness or employment, if tax-rates escalate slowly over a longer period so that enterprises have time to adapt and maintain their competitiveness. Only a limited number of energy-intensive enterprises were not able to maintain their competitiveness – and this is why special rules for energy-intensive industries are necessary.
    [Show full text]
  • Elements of Income Tax Evasion and Avoidance in Denmark Søren Bo Nielsen, Poul Schou and Jacob Krog Søbygaard* Summary
    SWEDISH ECONOMIC POLICY REVIEW 9 (2002) 139-164 Elements of income tax evasion and avoidance in Denmark Søren Bo Nielsen, Poul Schou and Jacob Krog Søbygaard* Summary Increasing internationalisation may challenge national tax systems in various ways, adding to the pressure on traditional tax bases. This pa- per examines mechanisms of evasion and avoidance that erode in- come tax bases. Special emphasis is placed on migration out of (and into) Denmark, but we also attempt to gauge in broad terms whether evasion is more important for income than consumption taxation. As concerning migration, patterns of migration out of and into Denmark during the years 1993 to 1999 are analysed. During this pe- riod, around 14,000 Danish citizens aged 17 to 62 years have emi- grated annually. About 75 per cent of these have returned to Den- mark after six years. At the same time, about 9,000 people have immi- grated into Denmark from the OECD area each year; because these people have a lower return propensity than emigrating Danes, the net annual migration deficit is only about 500 people. It is concluded that the current migration patterns do not seem to threaten the Danish income tax base. As for income tax evasion, using an indirect method, we find that an amount of income in the order of 20 to 40 billion DKK (around 2- 4 per cent of GDP) is missing during the years 1995-97. Though the figures should be interpreted very cautiously because of data prob- lems, this amount suggests that income is especially vulnerable to tax evasion in Denmark, as compared to consumption.
    [Show full text]
  • The Danish Way March 2002
    DdL The Danish Way March 2002 PUBLICATION No.: 8 APRIL 2002 THE Property Valuation and DANISH Taxation in Denmark PROPERTY VALUATION AND TAXATION WAY IN DENMARK By Jens Wolters Revised and updated by Stig Enemark, March 2002. An international publication series on surveying, cadastre and land management in Denmark. Published in Copenhagen, Denmark, by: The Danish Association of Chartered Surveyors Lindevangs Allé 4 DK-2000 Frederiksberg Denmark Phone: +45 3886 1070 Fax: +45 3886 0252 E-mail: [email protected] Web-site: www.ddl.org ISSN 1399-591X Jens Wolters National Survey and Cadastre, Denmark The Danish Association of Revised and updated byChartered Stig Enemark, Surveyors March 2002. Introduction Valuation of real property is carried out by various institutions and for various private and public purposes. E.g., private mortgage companies make their own valuation of the properties prior to determining a mortgage application, and the private real estate agents assess the property value prior to sales or on demand from individuals. However, this paper deals with the public valuation in Denmark and its interaction with the cadastre, the land registry and other relevant land information. Valuation for property taxes is a public task and is carried out by laymen appointed as valuers by the municipal councils. Licensed surveyors do not play any official role in the valuation process or in the real estate management business. The purpose of the public valuation is to provide a clear and widely accepted background for calculation of property tax. Property taxes comprise 3,5 percent of total taxes and duties in 2000 corresponding to 22,000 million DKK (approx.
    [Show full text]