Navigating the 2023 Tax Yearin Denmark with Crossbord
Navigating the 2023 Tax Year in Denmark with Crossbord
With the arrival of the new year, businesses and their international employees in Denmark must prepare for the annual tax statement (“Årsopgørelse”) for the income year 2023. Available from March 11, 2024 at www.skat.dk, this crucial document reflects income, deductions, and taxes, offering a clear view of one’s fiscal responsibilities and potential refunds or additional taxes owed.
Despite the accuracy of most statements, due to comprehensive data collection from employers and financial institutions, discrepancies can arise. When inaccuracies are detected, or if an annual statement has not been issued, individuals are obligated to adjust their tax returns. This complexity underscores the necessity of meticulous review and, if needed, professional assistance.
In some cases, the annual statement is not yet issued or not yet accurate. The following represents a few examples with questions to answer where the annual statement may be inaccurate or incomplete.
Danish resident and working abroad
If you are a Danish resident and working abroad, you may need to consider the following:
- Are you taxable to countries other than Denmark and can double taxation be avoided?
- Is the income, earned while working abroad, taxable to Denmark or can the Danish exemption rules (“Ligningslovens § 33A”) be applied?
- Are you covered by the rules of social security in another country – and can contributions be deducted in Denmark?
- Are you able to deduct expenses related to travelling, accommodations, etc.?
Foreign investments / assets
If you are a Danish resident and have foreign investment, you may need to consider the following:
- Are you taxable to other countries than Denmark and how can double taxation be avoided?
- If you have investments, how are they taxed in Denmark (yield, capital gain or similar)?
- Are there any requirements to register the assets with the Danish Tax Agency (“Skattestyrelsen”)?
- Do you have property in country other than Denmark?
Frontier worker
If you are a non-Danish resident working regularly in Denmark, you may need to consider the following:
- Are you able to utilise the Danish frontier worker regime (“Grænsegængerreglerne”)?
- Is the Danish year-end statement correctly reflecting your work schedule for the income year?
- How do you settle Danish and home country taxes?
- Have you received a bonus or similar payments – and how much should be taxed in each of the countries?
- Does your year-end statement result in a residual tax payment in Denmark?
Employment in Denmarkwith foreign aspects to consider
Do you have a non-Danish employer, you may need to consider the following:
- Have a Danish tax withholding been applied and how do you settle taxes?
- Have you received benefits in kind, which is not reported (e.g., employee shares program, warrants, etc.)?
- Is the income reported, or should you submit an information scheme?
Relocated from / to Denmark
If you have relocated to Denmark or from Denmark, you may need to consider the following:
- Is the Danish year-end statement correctly reflecting your calendar for the income year?
- How do you settle Danish and relocation country taxes?
- Have you received a bonus or similar payments – and how much should be taxed in each of the countries?
- Does your year-end statement result in a residual tax payment in Denmark?
- Are you subject to exit-taxation?
- Should your income be converted to a full-year income in Denmark?
A Seamless Integration for Employers
The Crossbord Foreign Employee Solution integrates smoothly into your business operations. Services are billed through salary deductions, facilitating direct support to your employees without intermediary complexities. This approach allows your international workforce to focus on their professional contributions, confident in their tax standing.
As the 2023 tax year unfolds, Crossbord stands ready to assist your business and its foreign employees navigate Denmark’s tax landscape with ease and expertise. Our commitment to your success is unwavering, and we invite you to explore how our services can benefit your organisation.
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™ – 2024