Taxes are an important topic for most Danish residents. The tax rate for individuals is high, even though it depends on the level of your taxable income. But due to high taxes to the Government’s treasury, Denmark has the most generous and efficient Social Security System (Velfærdsstat) in Europe. For example, all Danish residents and legal immigrants can get free medical help and education, and social services for elderly people and disabled. A lot of Danish residents say: “We are happy to pay taxes, because our government uses it to protect weak people, give great education to children and help with recovery to sick people.”
The Danish Tax Authority is called SKAT. You can get all information about taxes in English and Danish languages on the official site www.skat.dk. Tax documents are still only available in Danish. But the employees of the Danish Tax Authority work towards translating the most important topics to English and the website renews all the time.
Tax reporting in Denmark
Tax returns in Denmark are filled out online on the SKAT website. To access your tax folder, you must use the personal identification code, NemID. Declarations are created and filled out automatically, but it is your responsibility to check the correctness of your income and tax deductions.
The Preliminary Tax Report (forskudsopgØrelse)
In the Preliminary Tax Report (forskudsopgørelse), SKAT indicates your expected taxes for the next year. For example, you can find your 2019 Forskudsopgørelse in your personal tax folder already in November 2018. In this document your expected taxes for 2019 are calculated as well as your trækprocent (tax rate) и skattefrit fradrag (non-taxable amount).
The Final Tax Return (ÅrsopgØrelse)
The Final Tax Return (arsopgørelse) is calculated by SKAT. Your årsopgørelse for 2018, for example, is ready for your review on the official website in your folder at the beginning of March 2019. You will see red and green numbers when you look at your Final Tax Return. The amount that you need to pay back to SKAT will be in red, and the amount that you get back – is green. Those numbers come out as a result of recalculations of your taxes. They indicate the difference between the estimated income and expenses as shown in Forskudsopgørelse and the actual numbers for 2018.
Official organizations submit numbers to the Danish Tax Authority and those numbers appear on your Final Tax Return – Årsopgørelse. Some of those official organizations are Danish banks, companies, public institutions etc. You can change the numbers if SKAT indicated them incorrectly.
SKAT does not always have access to the correct data for calculating your tax deductions. You can change the data in your tax report, Årsopgørelse, online. The recalculation of taxes, as well as the amount that you must pay or that you need to return, occurs within a few seconds. Do not be afraid to change the document several times because you need to show your income and expenses in the report correctly. If SKAT owes you money, you will receive it on your personal account (Nemkonto) at the beginning of April 2019.
How to correct the information in your tax DOCUMENTS:
1. Go to the SKAT website www.skat.dk
2. Go to your personal tax profile using your NemID
3. Find the document to correct (årsopgørelse or forskudsopgørelse)
4. Find the menu on the left, find the item “Ret Forskudsopgørelse” or “Ret Årsopgørelse”, now you can correct your information
This information is prepared by Elena Kabatchenko, Finance Guide.