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

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

  • Taxation in Denmark Tax for non-Danes

  • Programme

    Taxation in Denmark – Tax for non-Danes Side 2

    Public spending Top 3

    The Danish tax

    system Direct 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 spending Top 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 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

    Taxation in Denmark – Tax for non-Danes Page 5

    DKK

  • 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

  • JUL

    NOV

    MAY

    MAR

    Calendar Important 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

    PDF

    XX

    Skattestyrelsen

    Skattestyrelsen

  • 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).

    Taxation in Denmark – Tax for non-Danes Page 14

    EUR

  • Tax assessment notice Overpaid 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 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 kno