Tax deduction in Denmark

Understanding how tax deductions work in Denmark is essential for anyone new to the country.

Whether you are a student, employee, or someone starting an internship, knowing which deductions you are entitled to can significantly reduce your tax burden. Denmark offers a variety of tax deductions that help lower your taxable income, making it important to familiarize yourself with these rules early on.

What is a tax deduction (skattefradrag)?

A tax deduction reduces the portion of your income that is subject to tax, effectively lowering the amount of tax you need to pay. In Denmark, several factors determine your eligibility for deductions, such as your income, residency status, and specific expenses. By applying these deductions, you can ensure that you are only taxed on the income that remains after eligible costs are subtracted.


If you need guidance you can order WorkAdvice tax service here and give us permission to check your taxes.

Common tax deductions in Denmark

There are several common tax deductions that newcomers should be aware of. Understanding these common deductions of tax can help you significantly lower the amount of tax you owe at the end of the year.

  • Personal allowance (personfradrag): This is a standard deduction that applies to all taxpayers in Denmark. It reduces the amount of income subject to tax.

  • Work-related deductions: If you have transportation expenses for commuting to work or other job-related costs, you may be eligible to deduct these from your taxable income.

  • Housing-related deductions: For those who own property, interest on mortgage payments can often be deducted. Renters may also be eligible for deductions under certain circumstances.

Education expenses: Students or those with student loans may be able to deduct certain education-related costs, including interest on student loans or fees for courses that improve professional qualifications.

How to claim tax deductions in Denmark

Claiming tax deductions in Denmark is a straightforward process, but it requires that you maintain proper records and submit the correct documentation. 

Here’s how you can claim deductions:

  1. Submit documentation through the Danish tax system (skat.dk):
    Log into your account on the SKAT website, where you can submit information about your deductible expenses.

  2. Keep records of deductible expenses:
    It’s important to keep track of receipts and documentation for expenses that qualify for deductions, such as transportation costs or education fees.

  3. Review your annual tax statement (årsopgørelse):
    At the end of each tax year, SKAT will issue an annual tax statement that shows your income and deductions. Make sure that all relevant deductions are included and contact SKAT if there are any discrepancies.

For more detailed information about taxes in Denmark, including how to maximize your deductions, you can visit our general tax information page.

Need guidance and information about taxes in Denmark?

Taking advantage of tax deductions in Denmark can save you money and reduce the amount of tax you owe. By understanding the most common deductions and ensuring that they are accurately reflected in your tax filings, you can ease your financial burden. 

If you need assistance with tax deductions or have any questions about the Danish tax system, WorkAdvice is here to help guide you through the process.

 

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