UPDATE YOUR TAX CARD
Your Danish tax depends on your private income and circumstances. If you have any changes to your income or circumstances this may impact how much you shall pay in Danish tax.
SKAT will not automatically update your tax card - this is something you must do yourself manually to make sure you pay the correct amount in Danish tax. So what now?
1. DOWNLOAD YOUR PRELIMINARY TAX RETURN | CHECK FIGURES
Log on to your E-tax system and find your Preliminary tax return (Forskudsopgørelsen).
Now go through each figure stated and assess if updates are needed (e.g. you have changed address, expect fewer business travels, expect less interests expenses, have a higher salary income, changed employer, moved from Denmark etc.).
- example; you have a new address - recalculate travel deduction based on new distance between your home and work address.
- example; you get a higher salary - recalculate the amount (old salary multiplied with x-months and new salary multiplied with x-months).
- example; you have bought a house - update interest expenses and property value tax. If applicable include "guarantee provision" (this is not reported to SKAT by banks)
2. UPDATE YOUR PRELIMINARY TAX RETURN | NEW TAX CARD
Once you have reviewed your Preliminary tax return and identified amounts that needs corrections then you are ready to amend your preliminary tax return.
Now go to your E-tax system, click amend Preliminary tax return - located the relevant boxes and update figures. Once you are done you submit the updates and a new preliminary tax return will be issued.
3. CHECK YOU EMPLOYER RECEIVES YOUR NEW TAX CARD
Based on the new preliminary tax return SKAT will issue a Tax Card and your Employer will automatically get the information about new Tax Card.
We do see errors from time to time and therefore we recommend you confirm with your HR / Payroll department that they have received your new Tax Card.
ENDING REMARKS
We can help you navigate in tax rules ensuring a correct tax card and applicable deductions are included. Please feel free to contact us for support.
Contact us for a free meeting, we are ready at make@yourtax.dk.