'Four in five' taxpayers in Denmark could receive a windfall on Friday

Ritzau/The Local
Ritzau/The Local - [email protected]
'Four in five' taxpayers in Denmark could receive a windfall on Friday
The Danish Tax Authority's website. Photo: Signe Goldmann/Ritzau Scanpix

Millions of taxpayers in Denmark will on Friday April 14th receive a boost to their bank accounts as overpaid tax is returned.


The Danish Tax agency (Skattestyrelen) on Friday begins to pay out money owed to taxpayers whose tax contributions in 2022 exceeded the amount they were eligible to pay.

A total of 3.8 million people in Denmark will receive tax monies amounting to 25.5 billion kroner from the agency, it said in a statement.


That corresponds to an average of 6,500 kroner per person. Some taxpayers will fall well under this average while other will not be due any money.

In some cases, money will be owed by the tax payer to the tax agency. Around 800,000 people must make additional payments to the tax agency because their contributions during 2022 fell short of the amount on their final tax returns.

READ ALSO: Årsopgørelse: How to check whether you are due Danish tax back

Annual tax returns (årsopgørelser) in Denmark cover calendar years. They are released in March and finalised in late spring, meaning taxpayers have this period to correct the information on their tax returns from the previous calendar year.

The returns account for income over the preceding tax year as well as deductions and taxes paid.

Too much tax paid during the preceding year can mean the tax payer is due a tax refund. This will show on the annual return on its release in March.

The reverse applies if less than the correct rate has been paid for that person’s individual circumstances, meaning money might be owed to the Danish tax system. Repayments must be made by July 1st.

Taxpayers can log on to the platform to check their returns and update their information. The annual tax return can be manually adjusted, such as by changing information relating to income or deductions, until May 1st but rebates from the tax system can be automatically paid back as early as April.

The majority of tax rebates will be paid on Friday. Exceptions include persons who owe money to the state or who have been asked to provide additional information on their returns.

READ ALSO: Danish tax authorities to contact millions of taxpayers over returns

Danish taxpayers have shown a particularly keen interest in checking their annual returns in 2023, according to the agency.

“There's a lot of interest in the annual return. We can actually see that 180,000 more people have logged on compared to the same point last year,” Danish Tax Agency Director Jan Møller Mikkelsen said.

That may be related to the relatively high number of people due to be returned money compared to recent years, and the high amount to be paid back.

In 2022, 3.7 people were returned a total of 19.9 billion kroner.

“Four out of five people are set to get money back this year,” Mikkelsen said.

Higher interest subsidies resulting from higher interest rates in 2022 are part of the explanation for this, he said.

A change to the tax deduction for people in full time work, beskæftigelsesfradraget, also means some people get more back from their 2022 payments than they would have in earlier years, he noted.

READ ALSO: Does Denmark really have the highest tax in the world?


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