Tax issues for foreigners at DTU

Tax issues for foreigners at
Aarhus University
March 2013
Kim Splidsboel
SKAT

Programme
• Who pays Tax in Denmark?
• Ordinary Tax system
• Preliminary Tax Assessment
• Income Tax returns
• Annual Tax Assessment
• Tax on the internet www.skat.dk

International Introduction
New to Denmark

International Introduction
International Citizen Service
International Citizen Service West
Nordhavnsgade 4-6
8000 Aarhus C
Tlf: +45 72 22 33 75
Mail: west@icitizen.dk
Open: Thursday 13-17 and Friday 9-13
Get off to a good start in Denmark – all the service you need in one place

International Introduction
International Introduction
Who pays Tax in Denmark ?
1. All persons living in Denmark – according to
the Tax at Source Act Section 1 – Full Tax
liability
2. All persons working in Denmark – according
to the Tax at Source Act Section 2 – Limited
Tax liability

International Introduction
International Introduction
Your Tax status in Denmark
1. Working at AU for more than 6 months – you
are considered a ”fully taxable person”
2. You will be taxed on your world wide income
3. A tax treaty between Denmark and your home
country may regulate the Tax to be paid

International Introduction
International Introduction
Information from you to ”SKAT”
Formular 04.063 E
Copy of your letter of employment.

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Formular 04.063 E

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International Introduction
Normal Tax in Denmark
You will receive a preliminary Tax Assessment from
SKAT every year
You must check your Tax return every year to SKAT in
Denmark – and you will receive your ”Annual Tax
Assessment”
You can apply for some deduction in the Tax like any
Danish taxpayers
Please inform SKAT on your foreign income or Danish
income i.e. interest from bank accounts – every year
You can submit the information on e-Tax at
www.skat.dk

International Introduction
Important times in the Tax year
Submitting
information
regarding
the Tax card
Submitting the
Tax return – for
those of you,
who have foreign
income or your
own company -
no later than July
1.
Tax during
the year
Submitting
the Tax
return – for
ordinary
Taxation –
no later
than May 1.

International Introduction
As an ordinary Tax payer in Denmark
You need to inform SKAT on your foreign income or
foreign property – every year
Danish income like salary, interests and so on is
automatically put on your Tax assessment
You can apply for other deductions in the Tax like
any Danish taxpayers

International Introduction
International Introduction
Tax deduction in Denmark
Applies for employees taxed in Denmark on salary
1. First 42.000 DKK is Tax free – personal allowance
2. Special employment allowance up to 22.300 DKK
3. Local Transport – if more than 24 km transport a day
4. Interest payments, Danish and foreign
5. Pension scheme payments – paid by you
6. Contributions to unemployment funds and trade
union memberships
7. Deduction for meals and accommodation – certain
conditions

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International Introduction
Deduction for Transport between home and work
Rates for 2012: Rates for 2013:
0 - 24 Km No deduction No deduction
25 - 120 Km 2,10 kr. per Km . 2,13 kr. per Km.
121 km 1,05 kr. per Km. 1,07 kr. Per Km.

International Introduction
Tax and Pensions Plans
You can take you foreign pension plan with you to
Denmark and get a deduction.
The actual rules about this – you have to contact the
Tax Centre in Struer who also have to approve the
Pension plan.
You have to submit the form 07.055E

International Introduction
International Introduction
Deduction for expenses for food and accommodation
Employees might have Tax deduction for:
Food
DKK. 455 pr. a day (24 hours)
Accommodation DKK. 195 pr. a day (24 hours)
Maximum of a total amount of
50.000 DKK
Please note that you have to meet certain condition in order to get
the deduction
The deduction for food applies for the first 12 months
The deduction for accommodation can apply for up to 24 months
For 2013 maximum is 25.000 DKK

International Introduction
Forskudsopgørelse – Preliminary Tax Assessment – Tax card
1 Your salary after deduction for
Labour market Tax
5
1
2
4
2 The total calculated preliminary Tax
for the year
3 The total calculated preliminary
Labour market Tax – 8%
4 The Tax per cent that will be
deducted from your salary
5 Your monthly Tax free amount
3

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International Introduction
Monthly salary and Tax deduction
calculation your salary
Monthly salary after deduction
of pension payment 33.971 kr. 33.971 kr.
Labour market Tax (AM) 8% -2.671 kr. -2.671 kr.
Salary after AM
31.334 kr.
Tax free amount from Tax card
-5.874 kr.
Salary to be taxed by 38%
25.460 kr.
Deducted Tax (A-skat) 38% -9.675 kr. -9.675 kr.
You will receive after AM and A-skat
21.659 kr.

International Introduction
International Introduction
Tax Return 2012
You have to submit an income Tax return for 2012 if
you have been in Denmark for 2012 and working in
Denmark in 2012.
The self service site on Skat.dk opens on March 4.
Please note there are different forms – depending on
foreign income or no foreign income

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International Introduction
Oplysningskort – Tax information Card

International Introduction
Tax assessment notice
The income year in Denmark is 1. January to 31. December
From 4. March 2013 you will received a tax assessment notice for the previous
income year.
The tax assessment notice contains information of your income and expenses
etc. and taxes paid for the preceding income year and information from third
party – employers – banks etc.
You can view your annual tax statement for 2012 in your tax folder via E-tax for
individuals
(Tast-selv) on the Internet.
Side 21 19. marts 2013

International Introduction
Extended Tax return
You must use an extended income tax return if:
You have been self-employed
You own rental property
Have you had income from employment or securities abroad, or you have assets
abroad, you need a tax return for foreign income.
You can download a tax return for foreign income on www.skat.dk.
Form 04012.
Side 22 19. marts 2013

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Income from abroad – Form 04.012 E
If you have income from abroad while staying in Denmark, and you are
taxed as a full taxable person in Denmark, you also have to submit the
form 04.012 E The Tax return for foreign income.

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Property abroad – Form 04.053 EN
You also have to submit the form 04.053 if you own a property abroad

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How to go online

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”TastSelv” on the internet

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Tastselv – How to check your Tax information

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Advantages of using E-tax
If You have corrections or addtions for the tax assessment notice, you can use E-
tax at skat.dk
The advantages of this are, among others, that you can view your new tax
assessment notice right away – and print it if you like.
You can also click into information for each box to see the information about
income – deduction etc.
You can print your tax assessment notice from the tax folder. The version you
print yourself is identical to a printed statement from SKAT and is valid in exactly
the same way as statement received from SKAT.
Side 31 19. marts 2013

International Introduction
Side 32 19. marts 2013

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Tax folder
Your preliminary tax and final tax statement in PDF format. The latest will always
be as "current", but you can also view older records.
The information to be reported to tax authorities about you from third parties such
as employers, banks, pension funds, etc..
Current salary and e-tax cardt; here you can see information from your
paychecks and see which employer using your tax card (main card and / or
secondary tax card or free tax card).
A "log" which is a summary of the entries you've made in TastSelv, and the Tax
Administration has made in relation to you.
Your property information.
Side 33 19. marts 2013

International Introduction
Submitting information – foreign income
Side 34 19. marts 2013

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Submitting information foreign income
Side 35 19. marts 2013

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OVERPAID TAX
If you have paid to much in tax you will nearly at the same time as you receive
your final tax statement receive money on you Nem-konto Easy Account.
You will get interest at 0,5 pct of the amount tax free.
Overpaid tax will be paid to you Nem-konto (Easy account) 27th March
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International Introduction
OVERPAID TAX
Payment of overpaid tax if you have left Denmark
SKAT calculates your tax and creates a tax assessment notice for you on the
basis of the information we have received about your income situation, but SKAT
very often does not have information on the date on which you left Denmark, so
the tax calculation is carried out on the assumption that you are tax liable for the
entire year.
I
In many cases, this is not correct, and we therefore retain any overpaid tax until
you have informed us of the date that you moved out of the country.
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Outstanding Tax
Pay your outstanding tax in good time and save money !
Up to 1. July 2013 you pay a day-to-day interest (2,7 pct. for the whole tax year)
After 1. July 2013 you must pay 4,7 pct.
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International Introduction
Penalty for outstanding tax
Calculation of interest (up to 1. July)
Thomas Jensen has a outstanding tax of 15.000 kr.
In end March 2013 he choose to pay the tax before 1. April. He must pay interest
in 91. days (from 1. January to 1.April).
He must pay as follow:
15.000 kr. x 2,7 pct. x 91 days = 100,97 kr.
365 days
Total payment
15.101 kr.
Side 39 19. marts 2013

International Introduction
Outstanding tax
If your tax assessment notice shows an outstanding tax and you wish to pay it
from a foreign bank account, you need an IBAN code (International Bank
Account Number) and a SWIFT-BIC code:
IBAN code: DK94 3000 0007540531
SWIFT-BIC code: DABADKKK
You must provide your Danish civil reg.no. (CPR) and which year the payment
concerns.
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Leaving Denmark ?
Information about residence and other relevant information when leaving
Denmark to stay abroad,
If you're moving abroad (incl. Greenland/Faroe Islands), your taxability has to be
determined. Please fill this form, and send it to your local tax office.
Formular 04.029E
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Am I entitled to a tax refund from SKAT ?
If your tax assessment notice states that you have paid too much tax, and if you
do not have a Danish NemKonto (Easy Account), please send an e-mail to
SKAT. You must inform SKAT of your IBAN code (International Bank Account
Number) and SWIFT-BIC code as well as your Danish civil reg.no. (CPR).
Please note that it may take up to 90 days before the tax refund is credited to
your foreign account.
Side 42 19. marts 2013

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Final
Questions ?
Thank you for your attention.