Forskudsopgørelse: Why checking your preliminary Danish tax return matters
Taxpayers in Denmark can now view their preliminary tax returns, or forskudopgørelse, for 2024. Here's why it's important to ensure your information is updated.
The preliminary tax return, forskudsopgørelse, was released by Denmark's tax authority Skat online on Monday night ahead, just ahead of schedule. Taxpayers can therefore now log in to the Skat.dk platform and check their preliminary tax returns for 2024.
The preliminary tax returns eventually form the basis of the final tax return, årsopgørelse, which is released in March and finalised by May. Taxpayers can check how much tax they have paid or are due to pay during the course of the year and edit their income and deductions information on the preliminary version of the return, the forskudsopgørelse.
High interest in checking tax information in advance is usual Danish Tax Authority vice director Jan Møller Mikkelsen told news wire Ritzau in November 2022, when the 2023 forskudopgørelse was released.
"This tells us that Danes are now very alert to their tax budget for the coming year,” Mikkelsen said at the time.
“A preliminary return that is correct is the best way to predictable tax finances,” he said.
READ ALSO: Three things to know about Denmark’s ‘forskudsopgørelse’ preliminary tax return
By ensuring totals are correct now, taxpayers can ensure they do not have to pay a tax deficit when the returns are finalised next year.
The Tax Authority therefore advises all taxpayers to check their preliminary returns, particularly if their circumstances have changed.
“If, for example, you have changed job, bought or sold a house, travel further to work or have more or less profit in your company, it’s important to go in and update it,” Mikkelsen said.
In 2022 and 2023, it became common for homeowners to restructure their mortgages due to high interest rates, another reason tax returns could change.
“Interest deductions [rentefradrag, ed.] are something many of us have been used to not thinking about. Interest costs have been low because many have had interest close to zero and that has not changed much until [2022],” Louise Aggerstøm Hansen, senior analyst and private economist with Danske Bank, told Ritzau in November 2022.
“Because many people have restructured to loans where interest rates have changed quite a lot. That can be an extra reason to change the preliminary tax return,” she said.
An additional factor in the preliminary returns this year is the forthcoming change to property tax rules, which takes effect on January 1st 2024.
This is because land value tax (grundskyld) will now be included in tax returns for homeowners. The tax was previously collected twice a year by municipalities, but switches to the tax return under new property tax rules.
As such, the total amount of property tax that is due for 2024 can be seen in the new preliminary returns.
READ ALSO:
- EXPLAINED: Denmark’s new property tax rules from 2024
- How to look up estimated Danish property tax for 2024
- What do homeowners need to know about new Danish property tax rules?
You can check how much tax you’ve paid or are due to pay during the course of the year and edit your taxation, income and deductions details on the preliminary version of the return, the forskudsopgørelse.
In some cases, you may have paid too little over the course of the year, which can result in a rebate.
The November release of the forskudsopgørelse (preliminary tax return), along with the årsopgørelse (annual return, calculated and displayed on the SKAT website at the beginning of March) are among the key dates on the Danish tax calendar.
Within a set deadline which falls at the beginning of May, taxpayers can edit their tax information, such as by changing income or tax deduction information, altering their final return and thereby payable tax.
A range of deductions can be applied to Danish income tax and you can check whether you qualify for these and enter information using the forskudsopgørelse. Deductions can be given for pensions contributions, donations to charities, unemployment insurance and trade union membership and commuting costs among other things.
Prior to the March publication of the annual return, you can check how much tax you’ve paid or are due to pay during the course of the year and edit your income and deductions details on the preliminary version of the return, the forskudsopgørelse.
Deficits or rebates are notified to taxpayers once the annual return is finalised, based on the tax you have paid throughout the year compared to the calculated amount due on the tax return.
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The preliminary tax return, forskudsopgørelse, was released by Denmark's tax authority Skat online on Monday night ahead, just ahead of schedule. Taxpayers can therefore now log in to the Skat.dk platform and check their preliminary tax returns for 2024.
The preliminary tax returns eventually form the basis of the final tax return, årsopgørelse, which is released in March and finalised by May. Taxpayers can check how much tax they have paid or are due to pay during the course of the year and edit their income and deductions information on the preliminary version of the return, the forskudsopgørelse.
High interest in checking tax information in advance is usual Danish Tax Authority vice director Jan Møller Mikkelsen told news wire Ritzau in November 2022, when the 2023 forskudopgørelse was released.
"This tells us that Danes are now very alert to their tax budget for the coming year,” Mikkelsen said at the time.
“A preliminary return that is correct is the best way to predictable tax finances,” he said.
READ ALSO: Three things to know about Denmark’s ‘forskudsopgørelse’ preliminary tax return
By ensuring totals are correct now, taxpayers can ensure they do not have to pay a tax deficit when the returns are finalised next year.
The Tax Authority therefore advises all taxpayers to check their preliminary returns, particularly if their circumstances have changed.
“If, for example, you have changed job, bought or sold a house, travel further to work or have more or less profit in your company, it’s important to go in and update it,” Mikkelsen said.
In 2022 and 2023, it became common for homeowners to restructure their mortgages due to high interest rates, another reason tax returns could change.
“Interest deductions [rentefradrag, ed.] are something many of us have been used to not thinking about. Interest costs have been low because many have had interest close to zero and that has not changed much until [2022],” Louise Aggerstøm Hansen, senior analyst and private economist with Danske Bank, told Ritzau in November 2022.
“Because many people have restructured to loans where interest rates have changed quite a lot. That can be an extra reason to change the preliminary tax return,” she said.
An additional factor in the preliminary returns this year is the forthcoming change to property tax rules, which takes effect on January 1st 2024.
This is because land value tax (grundskyld) will now be included in tax returns for homeowners. The tax was previously collected twice a year by municipalities, but switches to the tax return under new property tax rules.
As such, the total amount of property tax that is due for 2024 can be seen in the new preliminary returns.
READ ALSO:
- EXPLAINED: Denmark’s new property tax rules from 2024
- How to look up estimated Danish property tax for 2024
- What do homeowners need to know about new Danish property tax rules?
You can check how much tax you’ve paid or are due to pay during the course of the year and edit your taxation, income and deductions details on the preliminary version of the return, the forskudsopgørelse.
In some cases, you may have paid too little over the course of the year, which can result in a rebate.
The November release of the forskudsopgørelse (preliminary tax return), along with the årsopgørelse (annual return, calculated and displayed on the SKAT website at the beginning of March) are among the key dates on the Danish tax calendar.
Within a set deadline which falls at the beginning of May, taxpayers can edit their tax information, such as by changing income or tax deduction information, altering their final return and thereby payable tax.
A range of deductions can be applied to Danish income tax and you can check whether you qualify for these and enter information using the forskudsopgørelse. Deductions can be given for pensions contributions, donations to charities, unemployment insurance and trade union membership and commuting costs among other things.
Prior to the March publication of the annual return, you can check how much tax you’ve paid or are due to pay during the course of the year and edit your income and deductions details on the preliminary version of the return, the forskudsopgørelse.
Deficits or rebates are notified to taxpayers once the annual return is finalised, based on the tax you have paid throughout the year compared to the calculated amount due on the tax return.
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