Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay...
Transcript of Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay...
Taxation in DenmarkTax for non-Danes
Programme
Taxation in Denmark – Tax for non-Danes Side 2
Public spending Top 3
The Danish tax
systemDirect and indirect taxes
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
deductions
Personal allowance
Deduction for transport
Deduction for food and accommodation
Leaving Denmark
Further information
Contact information
Questions
Public spendingTop 3
Taxation in Denmark – Tax for non-Danes Page 3
1 2
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 SystemDirect 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
Taxation in Denmark – Tax for non-Danes Page 5
DKK
The Danish Tax SystemIndirect 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
JUL
NOV
MAY
MAR
CalendarImportant dates of the income year
Taxation in Denmark – Tax for non-Danes Page 7
FEBJAN
APR
OCT
JUN
SEP
DEC
AUG
From mid-March you can submit information to your tax
return. The sooner you submit, the sooner you get the your
tax assessment notice. MAR
The deadline for submitting your tax return is 1 May.
MAY
If you have non-Danish income or income from your
business, the deadline is 1 July.JUL
Submit information regarding your preliminary income
assessment / tax card for the next year. NOV
The Danish income year runs from 1 January to 31 December
E-tax (TastSelv)www.skat.dk/english
Taxation in Denmark – Tax for non-Danes Page 8
E-tax (TastSelv)
Search
your earned
income this
year
Change your
tax
assessment
notice/tax
return Pay
outstanding
tax
Your tax for
20XX and
previous
years
Change
your email/
phone no.
Preliminary
income
assessment
(tax card)See your
tax
assessment
notice
Main page
The tax you
pay in 20XX
Preliminary
income
assessment
ProfileContact
Personal
tax
informationPayment
Preliminary
income
assessment
Tax
assessment
notice
Vehicles
Tax
assessment
notice
E-tax (TastSelv)Preliminary income assessment (Forskudsopgørelsen)
Taxation in Denmark – Tax for non-Danes Page 10
50,000
/ year
Calculate
Select a
previous
preliminary
income
assessment
E-tax (TastSelv)Preliminary income tax assessment (Forskudsopgørelsen)
Taxation in Denmark – Tax for non-Danes Page 11
New tax
card
BackAccept
Income
Calculation
Page 12
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
E-tax (TastSelv)Tax assessment notice (Årsopgørelsen)
Taxation in Denmark – Tax for non-Danes Page 13
Årsopgørelse
XX
Skattestyrelsen
Skattestyrelsen
Tax liabilityNon-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).
Taxation in Denmark – Tax for non-Danes Page 14
EUR
Tax assessment noticeOverpaid or outstanding tax
Taxation in Denmark – Tax for non-Danes Page 15
November
Preliminary income
assessment
March
Tax assessment notice
Salary 50,000
Benefits 12,000
Transport deduction -3,000
Interest -4,000
Taxable income 55,000
Bottom-bracket tax 2,000
Health contributions 40
Municipal tax 2,500
Church tax 500
Calculated final tax 5,040
Provisional tax paid -5,040
Overpaid tax 0
Salary 50,000
Benefits 12,000
Transport deduction -3,000
Interest -4,000
Taxable income 55,000
Bottom-bracket tax 2,000
Health contributions 40
Municipal tax 2,500
Church tax 500
Calculated final tax 5,040
Provisional tax paid -5,040
Overpaid tax 0
March
Tax assessment notice
Salary 50,000
Benefits 12,000
Transport deduction -1,000
Interest -4,000
Taxable income 55,000
Bottom-bracket tax 2,000
Health contributions 40
Municipal tax 2,500
Church tax 500
Calculated final tax 5,040
Provisional tax paid -5,040
Outstanding tax 560
March
Tax assessment notice
Salary 50,000
Benefits 12,000
Transport deduction -7,000
Interest -4,000
Taxable income 51,000
Bottom-bracket tax 1,500
Health contributions 30
Municipal tax 2,000
Church tax 350
Calculated final tax 3,880
Provisional tax paid -5,040
Overpaid tax -1,160
Most common deductions
Taxation in Denmark – Tax for non-Danes Page 16
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
Allowances and deductionsPersonal 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 deductionsDeduction 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 deductionsDeduction 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 informationNice 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 informationNice 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 informationNice 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 toassign as your NemKonto.
• If you live abroad and wish to assign a foreign bank account as your NemKonto, you can useNemKonto‘s registration form, which you findat Nemkonto.dk – select “English & Deutsch”.
Taxation in Denmark – Tax for non-Danes Page 23
BANK
Further informationwww.skat.dk/english
Taxation in Denmark Side 24
- 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
Contact informationYou are always welcome to contact us
Taxation in Denmark – Tax for non-Danes Page 25
Main number
72 22 18 18
Foreign income matters
72 22 28 92 (Danish)
72 22 27 80 (English)
Questions
Thank you for your attention
Taxation in Denmark – Tax for non-Danes Page 26
Thank you for your attention
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