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Taxation in Denmark

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Taxation in Denmark 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 1 2 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 > Social and professional events tailored for you > Information on living & working in Denmark > Sharing of knowledge and experiences @expatindenmark Taxation in Denmark Side 27.
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