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TAXES

How to check whether you are due a Danish tax refund

The Danish Tax Agency has now published annual returns for taxpayers in the country.

How to check whether you are due a Danish tax refund
Photo: Liselotte Sabroe/Ritzau Scanpix

Accessing the annual tax return (årsopgørelse in Danish) is a yearly event for taxpayers in the Scandinavian country.

Around 2.6 million people visited the tax agency’s website during the first two days after returns began publishing on Friday, the authority said via Twitter. The figure relates to individual clicks and not necessarily 2.6 million different people.

“There has been a little more interest than there was last year. There was a lot of interest on Friday, but during the weekend people were able to log in quickly,” Danish Tax Agency (Skattestyrelsen) deputy director Karoline Klaksvig told Ritzau.

Users of the agency’s online platform are able to see whether they have paid too much tax or too little, and accordingly, whether they are due a return or have to pay more.

Within a set deadline, taxpayers can also edit their tax information, such as by changing income or tax exemption information.

Around three out of four taxpayers in Denmark get refunds after the yearly annual return (årsopgørelse), according to news agency Ritzau.

The amount refunded varies from person to person, but last year saw 3.4 million people paid an average refund of 4,700 kroner.

However, around one million people paid an average of 6,000 kroner back to tax after their returns had been completed.

You can log in to see your annual return via the Danish Tax Authority (SKAT) website here.

The annual return shows your income, deductions and what you have paid in taxes.

The annual statement is released annually in March, when you can see if you are owed money back or if you paid too little in taxes during the preceding year. In most cases, rebates are automatically deposit it into your bank account.

In 2020, you can view and correct your 2019 annual statement from March 9th. The deadline for reporting corrections to the annual report is May 1st 2020.

Most of the information in the annual statement is provided automatically by your employer or bank. If the information is correct, you do not need to take any further action.

However, you may need to enter some things into the report yourself, depending on your income type and whether you are entitled to any deductions.

These include deductions for home improvements (håndværkerfradrag), transport (kørselsfradrag), child support (børnebidrag) and work clothing and equipment. You also need to enter details of income from shareholdings and properties you own.

More in-depth detail on how these deductions and declarations work can be found on the Tax Agency website (in Danish) with some detail also provided on the website’s English language version.

The Danish Tax Agency can be contact via telephone in case of queries regarding your annual return. The telephone number to contact the agency is 7222 2828.

“We have a strong expectation that many people will call us to talk about their tax returns,” Klaksvig told Ritzau.

Do you have any questions or anything you’d like us to report, explain or describe in more detail about tax in Denmark? Let us know – we’d like to read your suggestions and will try to answer your questions.

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MONEY

Denmark scraps popular tax deduction for home improvements

A tax deduction for home improvements, the “håndværkerfradrag”, is to be scrapped in 2022 after parties agreed to end it in next year’s budget.

A popular tax subsidy for home improvements, the
A popular tax subsidy for home improvements, the "håndværkerfradrag", will end in Denmark on April 1st 2022. Photo: Signe Goldmann/Ritzau Scanpix

The government, along with its left wing allies Red Green Alliance, Social Liberals and Socialist People’s Party; and minor parties Alternative and the Christian Democrats, presented the 2022 budget on Monday, including an agreement to drop the home building subsidy.

Sofie Carsten Nielsen, leader of the Social Liberals, said “we are dropping the building subsidy that has ignited the already overheated housing and construction market”.

READ ALSO: Four ways to (legally) lower your tax bill in Denmark

The tax deduction will be removed from April 1st next year. Other tax deductions that can be applied for home services, including cleaning and childcare, are retained.

Tax subsidies for people who hire services in their homes, termed boligjobordningen, were broadened last year as part of government measures to support the economy during the coronavirus crisis.

The provision allowed for a higher tax deduction for the encompassed home services.

Demand for builders has since increased so dramatically that supply can no longer meet demand. As such, the parties behind the budget deal reason that the deduction is no longer needed.

Additionally, the Danish central bank, Nationalbanken, has warned that high demand could contribute to an overheating of the housing market.

Although the deduction was adjusted five years ago to favour green home improvements, the government’s allied parties still maintained they wanted to scrap it.

Nielsen said on Monday that the deduction has put Denmark’s building trade under strain.

“This is an economically responsible budget which also contains huge green decisions,” the Social Liberal leader said.

Finance Minister Nicolai Wammen said that the deduction would remain applicable to other trades, including cleaning, in order to prevent cash-in-hand arrangements.

“The biggest challenge we have in regard to the Danish service industry is in building and extensions. That’s why we are revoking the building element of the (subsidies),” Wammen said.

“But we are very concerned with keeping down cash-in-hand work in the service sector,” he added.

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