Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay...

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Taxation in Denmark Tax for non-Danes

Transcript of Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay...

Page 1: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

Taxation in DenmarkTax for non-Danes

Page 2: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

Page 3: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

Public spendingTop 3

Taxation in Denmark – Tax for non-Danes Page 3

1 2

3

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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

Page 5: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

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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

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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

Page 8: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

E-tax (TastSelv)www.skat.dk/english

Taxation in Denmark – Tax for non-Danes Page 8

Page 9: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

Page 10: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

Page 11: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

E-tax (TastSelv)Preliminary income tax assessment (Forskudsopgørelsen)

Taxation in Denmark – Tax for non-Danes Page 11

New tax

card

BackAccept

Income

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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

Page 13: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

E-tax (TastSelv)Tax assessment notice (Årsopgørelsen)

Taxation in Denmark – Tax for non-Danes Page 13

Årsopgørelse

PDF

XX

Skattestyrelsen

Skattestyrelsen

Page 14: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

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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

Page 16: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

Page 17: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

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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.

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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

Page 20: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

Page 21: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

Page 22: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

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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

Page 24: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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

Page 25: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

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)

Page 26: Taxation in Denmark - ihcph.kk.dk · 2020-05-27 · Green Taxes Green taxes are taxes that you pay for spending society's resources. The more resources you spend, the more green taxes

Questions

Thank you for your attention

Taxation in Denmark – Tax for non-Danes Page 26

Thank you for your attention

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Taxation in Denmark Side 27

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