Taxation in Denmark

Tax for non-Danes Programme

Public spending Top 3

The Danish tax Direct and indirect taxes system Calendar Important dates during the tax year

E-tax www.skat.dk/english Preliminary income assessment (forskudsopgørelse) Tax assessment notice (årsopgørelse) Final tax Overpaid or outstanding tax

Allowances and Personal allowance deductions Deduction for transport Deduction for food and accommodation Leaving Denmark

Further information

Contact information

Questions

Taxation in Denmark – Tax for non-Danes Side 2 Public spending Top 3 3

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Taxation in Denmark – Tax for non-Danes Page 3 What do you miss out on with ”undeclared work”?

Some people think you benefit financially from undeclared work. However, it is very rare that the person undertaking the work benefits financially. If you carry out undeclared work, you miss out on many advantages you get when you pay tax.

These advantages include: • Holiday pay • Insurance for work-related injuries • Payment for overtime • Help in case you do not get paid • Sickness benefits • Employer pension contributions • A recommendation when you leave a job • Tax deduction for travel between home and work • No credit facilities from the bank.

You risk a fine if you carry out undeclared work.

Taxation in Denmark – Tax for non-Danes The Danish Tax System Direct taxes (withholding rate)

2 types of general tax Municipal tax Church tax (optional tax)

2 types of state tax Bottom-bracket tax Top-bracket tax

Personal allowance DKK

Taxation in Denmark – Tax for non-Danes Page 5 The Danish Tax System Indirect taxes

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.

Electricity, water and waste, for example, are subject to green taxes.

Taxation in Denmark – Tax for non-Danes Page 6 Calendar Important dates of the income year

The Danish income year runs from 1 January to 31 December

From mid-March you can submit information to your tax return. The sooner you submit, the sooner you get the your tax assessment notice. JAN FEB MAR

The deadline for submitting your tax return is 1 May. APR MAY JUN

If you have non-Danish income or income from your business, the deadline is 1 July. JUL AUG SEP

Submit information regarding your preliminary income assessment / tax card for the next year. OCT NOV DEC

Taxation in Denmark – Tax for non-Danes Page 7 E-tax (TastSelv) www.skat.dk/english

Taxation in Denmark – Tax for non-Danes Page 8 E-tax (TastSelv)

Personal Tax Preliminary tax assessment income Payment information Vehicles Contact Profile Main page notice assessment

Tax Change assessment your email/ notice phone no.

Your tax for 20XX and previous years Preliminary income See your assessment tax (tax card) assessment notice

Preliminary income assessment The tax you pay in 20XX Change your tax Search assessment your earned notice/tax income this return Pay year outstanding tax E-tax (TastSelv) Preliminary income assessment (Forskudsopgørelsen)

50,000 / year

Select a previous preliminary income assessment

Calculate

Taxation in Denmark – Tax for non-Danes Page 10 E-tax (TastSelv) Preliminary income tax assessment (Forskudsopgørelsen)

Income

New tax card

Accept Back

Taxation in Denmark – Tax for non-Danes Page 11 Calculation

Example of a payslip

Salary (after deduction of pension contributions) DKK 33,971

Labour market contributions at 8% DKK -2,718

Salary after deduction of labour market contributions DKK 31,253

Deductions as stated on your tax card DKK -4,196

Salary to be taxed at the rate of 40% DKK 27,057

Tax deducted (A-skat) at the rate of 40% DKK -10,823

Salary after tax etc. DKK 20,430

Taxation in Denmark – Tax for non-Danes Page 12 E-tax (TastSelv) Tax assessment notice (Årsopgørelsen)

PDF XX Årsopgørelse

Skattestyrelsen

Skattestyrelsen

Taxation in Denmark – Tax for non-Danes Page 13 Tax liability Non-Danish income and/or property

If you are liable to pay full tax and have income or property outside Denmark, you have to inform the Danish Tax Agency (Skattestyrelsen).

EUR

Taxation in Denmark – Tax for non-Danes Page 14 Tax assessment notice Overpaid or outstanding tax

November March March March Preliminary income Tax assessment notice Tax assessment notice Tax assessment notice assessment

Salary 50,000 Salary 50,000 Salary 50,000 Salary 50,000 Benefits 12,000 Benefits 12,000 Benefits 12,000 Benefits 12,000

Transport deduction -3,000 Transport deduction -3,000 Transport deduction -1,000 Transport deduction -7,000 Interest -4,000 Interest -4,000 Interest -4,000 Interest -4,000 Taxable income 55,000 Taxable income 55,000 Taxable income 55,000 Taxable income 51,000

Bottom-bracket tax 2,000 Bottom-bracket tax 2,000 Bottom-bracket tax 2,000 Bottom-bracket tax 1,500 Health contributions 40 Health contributions 40 Health contributions 40 Health contributions 30 Municipal tax 2,500 Municipal tax 2,500 Municipal tax 2,500 Municipal tax 2,000 Church tax 500 Church tax 500 Church tax 500 Church tax 350 Calculated final tax 5,040 Calculated final tax 5,040 Calculated final tax 5,040 Calculated final tax 3,880 Provisional tax paid -5,040 Provisional tax paid -5,040 Provisional tax paid -5,040 Provisional tax paid -5,040 Overpaid tax 0 Overpaid tax 0 Outstanding tax 560 Overpaid tax -1,160

Taxation in Denmark – Tax for non-Danes Page 15 Most common deductions

Transport between home and work Box 51 Travelling expenses Box 53

Child support Box 56 - form 04.071

Interest expenses to the bank Box 42 - box locked in tax assessment notice

Interest expenses for your mortgage Box 41 - box locked in tax assessment notice

Trade union fee Box 50 - box locked in tax assessment notice

Unemployment insurance Box 52 - box locked in tax assessment notice

Taxation in Denmark – Tax for non-Danes Page 16 Allowances and deductions Personal allowances

The personal allowance is a general allowance to which all salary and wage earners are entitled.

Taxation in Denmark – Tax for non-Danes Page 17 Allowances and deductions Deduction for transport

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

Taxation in Denmark – Tax for non-Danes Page 18 Allowances and deductions Deduction for food and accommodation

Deduction for food and accommodation expenses during travelling. Certain conditions apply.

Taxation in Denmark – Tax for non-Danes Page 19 Leaving Denmark

Please remember to:

• Inform the Danish Tax Agency at (+45) 72 22 28 92 / (+45) 72 22 27 80 (English) about your residence and other relevant information about your stay abroad when leaving Denmark

• Deregister from Citizen Service Center (Borgerservice).

Taxation in Denmark – Tax for non-Danes Page 20 Further information Nice to know

Online shopping, EU countries and non-EU countries

You do not pay customs duties and Danish VAT on products from another EU country.

Danish VAT applies if products are shipped from a non-EU country (DKK 80).

Customs duties apply if products are shipped from a non- EU country (DKK 1,150).

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

Taxation in Denmark – Tax for non-Danes Page 21 Further information Nice to know

NemID

You need NemID.

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 from:

• Your bank

• Citizen Service Centre (Borgerservice).

Taxation in Denmark – Tax for non-Danes Page 22 Further information Nice to know

NemKonto

You need a NemKonto for payments from the public sector. This may be a Danish current account or a foreign bank account.

You can get a NemKonto in one of the following ways:

• Inform your bank of which of your accounts to assign as your NemKonto.

• 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 – select “English & Deutsch”. BANK

Taxation in Denmark – Tax for non-Danes Page 23 Further information www.skat.dk/english

- and at the bottom of skat.dk/english:

Important information • Claims for refund of decidend tax • Digital Post • Tax in Denmark (guide for non-Danes • Watch out for fake e-mails • Personal assistance – by appointment only

Taxation in Denmark Side 24 Contact information You are always welcome to contact us

Main number 72 22 18 18

Foreign income matters 72 22 28 92 (Danish) 72 22 27 80 (English)

Taxation in Denmark – Tax for non-Danes Page 25 Questions

Thank you for your attention

Thank you for your attention

Taxation in Denmark – Tax for non-Danes Page 26 Join the Expat in Denmark Community

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