Tax issues for foreigners at Aarhus University. Kim Splidsboel

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1 Tax issues for foreigners at Aarhus University March 2013 Kim Splidsboel SKAT

2 Programme Who pays Tax in Denmark? Ordinary Tax system Preliminary Tax Assessment Income Tax returns Annual Tax Assessment Tax on the internet

3 New to Denmark

4 International Citizen Service International Citizen Service West Nordhavnsgade Aarhus C Tlf: Mail: west@icitizen.dk Open: Thursday and Friday 9-13 Get off to a good start in Denmark all the service you need in one place

5 International Introduction Who pays Tax in Denmark? 1. All persons living in Denmark according to the Tax at Source Act Section 1 Full Tax liability 2. All persons working in Denmark according to the Tax at Source Act Section 2 Limited Tax liability

6 International Introduction Your Tax status in Denmark 1. Working at AU for more than 6 months you are considered a fully taxable person 2. You will be taxed on your world wide income 3. A tax treaty between Denmark and your home country may regulate the Tax to be paid

7 International Introduction Information from you to SKAT Formular E Copy of your letter of employment.

8 International Introduction Formular E

9 International Introduction Normal Tax in Denmark You will receive a preliminary Tax Assessment from SKAT every year You must check your Tax return every year to SKAT in Denmark and you will receive your Annual Tax Assessment You can apply for some deduction in the Tax like any Danish taxpayers Please inform SKAT on your foreign income or Danish income i.e. interest from bank accounts every year You can submit the information on e-tax at

10 Important times in the Tax year Submitting information regarding the Tax card Submitting the Tax return for those of you, who have foreign income or your own company - no later than July 1. Tax during the year Submitting the Tax return for ordinary Taxation no later than May 1.

11 As an ordinary Tax payer in Denmark You need to inform SKAT on your foreign income or foreign property every year Danish income like salary, interests and so on is automatically put on your Tax assessment You can apply for other deductions in the Tax like any Danish taxpayers

12 International Introduction Tax deduction in Denmark Applies for employees taxed in Denmark on salary 1. First DKK is Tax free personal allowance 2. Special employment allowance up to DKK 3. Local Transport if more than 24 km transport a day 4. Interest payments, Danish and foreign 5. Pension scheme payments paid by you 6. Contributions to unemployment funds and trade union memberships 7. Deduction for meals and accommodation certain conditions

13 International Introduction Deduction for Transport between home and work Rates for 2012: Rates for 2013: 0-24 Km No deduction No deduction Km 2,10 kr. per Km. 2,13 kr. per Km. 121 km 1,05 kr. per Km. 1,07 kr. Per Km.

14 Tax and Pensions Plans You can take you foreign pension plan with you to Denmark and get a deduction. The actual rules about this you have to contact the Tax Centre in Struer who also have to approve the Pension plan. You have to submit the form E

15 International Introduction Deduction for expenses for food and accommodation Employees might have Tax deduction for: Food DKK. 455 pr. a day (24 hours) Accommodation DKK. 195 pr. a day (24 hours) Maximum of a total amount of DKK Please note that you have to meet certain condition in order to get the deduction The deduction for food applies for the first 12 months The deduction for accommodation can apply for up to 24 months For 2013 maximum is DKK

16 Forskudsopgørelse Preliminary Tax Assessment Tax card 1 Your salary after deduction for Labour market Tax The total calculated preliminary Tax for the year 3 The total calculated preliminary Labour market Tax 8% 4 The Tax per cent that will be deducted from your salary 5 Your monthly Tax free amount 3

17 International Introduction Monthly salary and Tax deduction calculation your salary Monthly salary after deduction of pension payment kr kr. Labour market Tax (AM) 8% kr kr. Salary after AM kr. Tax free amount from Tax card kr. Salary to be taxed by 38% kr. Deducted Tax (A-skat) 38% kr kr. You will receive after AM and A-skat kr.

18 International Introduction Tax Return 2012 You have to submit an income Tax return for 2012 if you have been in Denmark for 2012 and working in Denmark in The self service site on Skat.dk opens on March 4. Please note there are different forms depending on foreign income or no foreign income

19 International Introduction Oplysningskort Tax information Card

20 Tax assessment notice The income year in Denmark is 1. January to 31. December From 4. March 2013 you will received a tax assessment notice for the previous income year. The tax assessment notice contains information of your income and expenses etc. and taxes paid for the preceding income year and information from third party employers banks etc. You can view your annual tax statement for 2012 in your tax folder via E-tax for individuals (Tast-selv) on the Internet. Side marts 2013

21 Extended Tax return You must use an extended income tax return if: You have been self-employed You own rental property Have you had income from employment or securities abroad, or you have assets abroad, you need a tax return for foreign income. You can download a tax return for foreign income on Form Side marts 2013

22 Income from abroad Form E If you have income from abroad while staying in Denmark, and you are taxed as a full taxable person in Denmark, you also have to submit the form E The Tax return for foreign income.

23 Property abroad Form EN You also have to submit the form if you own a property abroad

24 How to go online

25 International Introduction TastSelv on the internet

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27 International Introduction Tastselv How to check your Tax information

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30 Advantages of using E-tax If You have corrections or addtions for the tax assessment notice, you can use E- tax at skat.dk The advantages of this are, among others, that you can view your new tax assessment notice right away and print it if you like. You can also click into information for each box to see the information about income deduction etc. You can print your tax assessment notice from the tax folder. The version you print yourself is identical to a printed statement from SKAT and is valid in exactly the same way as statement received from SKAT. Side marts 2013

31 Side marts 2013

32 Tax folder Your preliminary tax and final tax statement in PDF format. The latest will always be as "current", but you can also view older records. The information to be reported to tax authorities about you from third parties such as employers, banks, pension funds, etc.. Current salary and e-tax cardt; here you can see information from your paychecks and see which employer using your tax card (main card and / or secondary tax card or free tax card). A "log" which is a summary of the entries you've made in TastSelv, and the Tax Administration has made in relation to you. Your property information. Side marts 2013

33 Submitting information foreign income Side marts 2013

34 Submitting information foreign income Side marts 2013

35 OVERPAID TAX If you have paid to much in tax you will nearly at the same time as you receive your final tax statement receive money on you Nem-konto Easy Account. You will get interest at 0,5 pct of the amount tax free. Overpaid tax will be paid to you Nem-konto (Easy account) 27th March Side marts 2013

36 OVERPAID TAX Payment of overpaid tax if you have left Denmark SKAT calculates your tax and creates a tax assessment notice for you on the basis of the information we have received about your income situation, but SKAT very often does not have information on the date on which you left Denmark, so the tax calculation is carried out on the assumption that you are tax liable for the entire year. I In many cases, this is not correct, and we therefore retain any overpaid tax until you have informed us of the date that you moved out of the country. Side marts 2013

37 Outstanding Tax Pay your outstanding tax in good time and save money! Up to 1. July 2013 you pay a day-to-day interest (2,7 pct. for the whole tax year) After 1. July 2013 you must pay 4,7 pct. Side marts 2013

38 Penalty for outstanding tax Calculation of interest (up to 1. July) Thomas Jensen has a outstanding tax of kr. In end March 2013 he choose to pay the tax before 1. April. He must pay interest in 91. days (from 1. January to 1.April). He must pay as follow: kr. x 2,7 pct. x 91 days = 100,97 kr. 365 days Total payment kr. Side marts 2013

39 Outstanding tax If your tax assessment notice shows an outstanding tax and you wish to pay it from a foreign bank account, you need an IBAN code (International Bank Account Number) and a SWIFT-BIC code: IBAN code: DK SWIFT-BIC code: DABADKKK You must provide your Danish civil reg.no. (CPR) and which year the payment concerns. Side marts 2013

40 Leaving Denmark? Information about residence and other relevant information when leaving Denmark to stay abroad, If you're moving abroad (incl. Greenland/Faroe Islands), your taxability has to be determined. Please fill this form, and send it to your local tax office. Formular E Side marts 2013

41 Am I entitled to a tax refund from SKAT? If your tax assessment notice states that you have paid too much tax, and if you do not have a Danish NemKonto (Easy Account), please send an to SKAT. You must inform SKAT of your IBAN code (International Bank Account Number) and SWIFT-BIC code as well as your Danish civil reg.no. (CPR). Please note that it may take up to 90 days before the tax refund is credited to your foreign account. Side marts 2013

42 Final Questions? Thank you for your attention.