Tax issues for foreigners at DTU

International Introduction
Tax Issues for Foreigners at Aarhus University
Autumn 2013
SKAT, Markedsføring, Aarhus
International Introduction
Programme - topics
 Ordinary tax system
 Preliminary income assessment
 Income tax return
 Annual tax assessment notice
 Tax on the internet - www.skat.dk
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International Introduction
New to Denmark
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International Citizen Service
International Citizen Service West
Nordhavnsgade 4-6
8000 Aarhus C
Phone: +45 72 22 33 75
Mail: west@icitizen.dk
Opening hours: Thursday 1 p.m. – 5 p.m. and Friday 9 a.m. – 1 p.m.
Get off to a good start in Denmark – all the service you need in one
place!
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Who pays tax in Denmark ?
• Any person living in Denmark must pay tax in Denmark - full tax liability.
• Any person working – but not living - in Denmark must pay some tax (on
wages, salary etc.) – limited tax liability.
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Your tax status in Denmark
If you have been working at Aarhus University for more than six months,
you will be subject to full tax liability.
You will be taxed on your global income.
A tax agreement to avoid double taxation between Denmark and your home
country may regulate the tax to be paid.
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Your information to SKAT at arrival
You have to send this to SKAT:
Form no. 04.063 E
Copy of your letter of employment.
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Form no. 04.063 E
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Paying tax in Denmark – preliminarily
You will receive a preliminary tax assessment from SKAT right away
when getting a CPR-nummer (civil registration no.).
Whenever you submit corrections to SKAT during the year about your
current income you will receive a new preliminary tax assessment . In
November you will automatically get an preliminary assessment for next
year.
Check it! You must do this yourself.
Please inform SKAT of your global (foreign + Danish) income, i.e.
interest from bank accounts, every year.
You can submit the information via E-tax (SKAT’s self-service facility –
TastSelv) at www.skat.dk
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Paying tax in Denmark - tax assessment
The Danish tax year runs from 1 January to 31 December.
In March you will receive a tax assessment notice for the previous year.
The tax assessment notice contains information about your income and
deductions etc. and taxes paid on income from the previous year and
information from your employer, banks etc.
You can view your tax assessment notice for 2013 in your tax folder via Etax (TastSelv) at www.skat.dk.
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Important dates during the tax year
Submit information
regarding your
preliminary income
assessment tax
card for the next
year.
Submitting the tax
return only for those
of you who have
foreign income or
income from your
own company - no
later than July 1st.
Tax during
the year
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Submitting
the tax
return for
ordinary
taxation –
no later
than May
1st.
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Paying tax in Denmark
As an ordinary taxpayer in Denmark you have to inform SKAT of
your foreign income or foreign property – every year.
Danish income like salary, interest, etc. is automatically put on your
tax assessment notice.
You can apply for tax deductions like any other Danish taxpayer.
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Tax deductions/allowances in Denmark
Employees taxed in Denmark on salary are allowed
certain tax deductions/allowances:
• You are allowed to earn DKK 43,000 before your start paying tax (this is
known as your personal allowance (personfradrag)
• Special employment allowance up to DKK 22,300
• Deduction for transport between home and work - if more than 24 km a
day – no matter whether you have got any expenses or not
• Interest payments - both Danish and foreign
• Pension scheme contributions - made by you
• Contributions to unemployment fund and trade union membership
• Deduction for meals and accommodation expenses, under certain
conditions, during travelling.
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Deduction for transport
Transport between home and work :
0 - 24 km
25 - 120 km
121 km -
Rates for 2013:
Rates for 2014:
No deduction
DKK 2.13 per km
DKK 1.07 per km
No deduction
(do not know yet)
(do not know yet)
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Tax and pensions schemes
You can take your foreign pension scheme with you to Denmark and get
a tax deduction.
For more information, you need to contact SKAT, who must approve
your pension scheme.
You must submit form no. 07.055E for SKAT’s approval.
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Deduction for food and accommodation expenses
If sent out by their employer employees may apply for the following tax
deductions during the travel:
Food:
DKK 455 per day (24 hours)
Accommodation: DKK 195 per day (24 hours)
- up to a maximum of DKK 25,000.
The deduction for food is only allowed for the first 12 months.
The deduction for accommodation can be allowed for up to 24 months.
Please note that you have to meet certain conditions in order to get
the deductions.
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Forskudsopgørelse – Preliminary income assessment – tax card
1 Your salary after deduction of labour
market contributions (AM-bidrag)
2 Total provisional tax calculated for
the year
2
5
4
3 Total preliminary labour market
contributions calculated at the rate of
8%
1
4 The tax per cent that will be deducted
from your salary
5 Your monthly tax-free amount
3
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Monthly salary and tax deduction
Calculation
Your salary
of pension contributions
DKK 33,971
DKK 33,971
Labour market contributions at 8%
DKK -2,718
DKK -2,718
Salary after deduction of labour
market contributions
DKK 31,253
Deductions as stated on your tax card
DKK -8,232
Salary to be taxed at the rate of 37%
DKK 23,021
Tax deducted (A-skat) at the rate of 37%
DKK -8,518
Monthly salary after deduction
You will receive
DKK -8,518
DKK 22,735
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Tax assessment notice
You will probably receive a tax assessment notice from SKAT automatically
CHECK IT – You are obliged to do so!
If it is incorrect, please submit the right information to SKAT.
The self-service site at www.skat.dk opens in March.
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Tax information card (Oplysningskort)
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Tax return for the tax assessment
If you have had :
• income from your own business (are self-employed)
• foreign income from employment or securities abroad
• income from rental property
- then you have to submit an income tax return for 2013.
You can download a tax return for foreign income on www.skat.dk,
Form no. 04.012.
Please note there are different forms – depending on whether you have
had foreign income or not.
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Income from abroad – form no. 04.012 E
If you have any income from abroad while staying in Denmark, and you
are subject to full tax liability in Denmark, you also have to submit form
no. 04.012 E - The tax return for foreign income.
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Property abroad – form no. 04.053 EN
You also have to submit the form 04.053 if you own a property abroad
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E-tax (TastSelv) on the internet
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Tastselv – how to check your tax information
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In the tax folder you will find:
• Your preliminary income assessment and tax assessment notice in PDF
format. The latest will always be the "current“, but you can also view the
previous one as well as other records.
• Information reported to SKAT by your employers, banks, pension funds,
etc.
• Current salary and e-tax card; you can see information about your
payslips and which employer uses your tax card.
• A "log" which is a summary of the entries you or SKAT have made in Etax.
• Information about your property.
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Advantages of using E-tax (TastSelv)
If you have any changes to your tax assessment notice, you can use E-tax
at skat.dk.
There you can
• view your new tax assessment notice right away – and print it if you like.
• click on the text for each box to see detailed information about your
income, deductions etc.
• print any of your tax assessment notices from the tax folder. The version
you print yourself is identical to the one SKAT sends you and is valid in
exactly the same way.
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Overpaid tax (NemKonto)
If you have paid too much tax, you will (nearly at the same time as you
receive your tax assessment notice in March) get a tax refund transferred
to your Nem-konto.
You will get a tax-free interest of 0.5% of the amount.
The tax refund will be paid to your NemKonto in March.
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Overpaid tax (foreign banks)
If your tax assessment notice states that you have paid too much tax, and if
you do not have a Danish NemKonto, please inform SKAT of your IBAN
number and SWIFT/BIC code as well as your Danish civil registration
number (CPR) by e-mail.
Please note that it may take up to 90 days before the tax refund is credited
your foreign account.
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Overpaid tax
Payment of overpaid tax if you have left Denmark:
SKAT calculates your tax and makes a tax assessment notice for you on
the basis of the information SKAT has received about your income. But
SKAT very often does not have information about the date you left
Denmark, and therefore the tax calculation is carried out on the assumption
that you are tax liable for the entire year.
In many cases this assessment is incorrect, and SKAT therefore retains
any overpaid tax until you have informed us about when you left Denmark
for good.
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Underpaid tax
Pay the rest of your tax in time and save money!
• Until 1 July you must pay a day-to-day interest of 2.7%.
• After 1 July, you must pay an interest of 4.7%.
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Day-to-day interest (underpaid tax)
Example of calculation of interest (before 1 July):
Thomas Jensen has paid too little tax: DKK15,000.
At the end of March, he chooses to pay the tax on 31 March.
He must pay interest for 91 days (from 1 January to 1 April) as follows:
DKK 15,000 x 2.7% x 91 days
= DKK
100.97 (DKK 101)
365 days
Total payment
DKK 15,101.00
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Underpaid tax
If your tax assessment notice shows that you have paid too little tax and
you wish to pay the rest from a foreign bank account, you need an IBAN
number (International Bank Account Number) and a SWIFT/BIC code in
order to pay SKAT:
IBAN number: DK94 3000 0007540531
SWIFT/BIC code: DABADKKK
You must write your Danish civil registration number (CPR) and which year
the payment concerns.
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Leaving Denmark?
Please remember to
• inform SKAT about your residence and other relevant information about
your stay abroad when leaving Denmark
• fill in form no. 04.029E and send it to SKAT. If you are moving abroad
(including to Greenland or the Faroe Islands), your tax liability has to be
determined.
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Any questions?
Thank you for your attention!
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