International Introduction Tax for foreigners Spring 2016

Programme Tax liability Public spending Important dates during the tax year Tax on the internet – skat.dk Tax assessment notice Income tax return Underpaid/overpaid tax Leaving Denmark Binding ruling Contact 17-09-2018

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. 1 Tax at Source Act Section 1 in Danish KSL § 1. All persons living in Denmark is liable to pay Tax in Denmark. For practical reasons – only persons above 15 years of age automatically receives an income tax forms. Tax is paid on salary, grants for students, pensions, unemployment benefits from unions, running your own business and working in another country, if you keep a residence in Denmark. 2 Tax at Source Act Section 2 in Danish KSL § 2. All persons working in Denmark is liable to pay tax in Denmark on the income from working in Denmark. If you later receives a pension from Denmark – you will again become liable to pay tax in Denmark. 17-09-2018

Your tax status in Denmark If you live or you have been in Denmark 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. 1. When you work at AU the tax authorities expect you to stay in Denmark for more than 6 months Therefore you are regarded ”a fully taxable person” according to section 1 in the Tax at Source Act in Denmark. 2. This means that the Danish tax authorities wants information on all your income – regardless of which country it comes from. 3. Your home country will not always be according to your citizenship – if you have stayed in another country for some years you can be regarded a resident/domiciled in that country for tax purpose – and that has influence on your tax in Denmark. 17-09-2018

Public spending 17-09-2018

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.; taxes paid on income from the previous year and information from your employer, banks etc. You can view your tax assessment notice for 2015 in your tax folder via E-tax (TastSelv) at skat.dk. 17-09-2018

Important dates during the tax year Submit information regarding your preliminary income assessment tax card for the next year. No matter how you are taxed you have to submit your information – either online or on paper. If you do it on paper you can not expect to have your income tax assessment notice before august/september From the middle of March until May 1. you can submit information to your Tax return. The sooner you submit, the sooner you get the income tax assessment notice. If you have foreign income or your own company you have until July 1. to submit the Tax return. In November the information to the Tax card is submitting to the system so that the preliminary income tax assessment is ready for use at January 1 – you can change it any time your incomes or deductions changes. Submitting the tax return for ordinary taxation – no later than 1 May. Tax during the year Submitting the tax return only for those of you who have foreign income or income from your own company. No later than 1 July. 17-09-2018

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. You have to check it both on the preliminary tax assessment an on the income tax return notice. 17-09-2018

Paying tax in Denmark Preliminary tax assessment In November you will automatically get a preliminary assessment for next year: Check it If you have changes to the expected incomes and deductions (foreign + Danish): Inform SKAT Submit the information via E-tax (SKAT’s self-service facility – TastSelv) at skat.dk. You will receive new preliminary tax assessments if you submit corrections to SKAT about your current income – see it in your E-tax. Tax assessment notice In March most of us will automatically get an annual income tax notice for the previous year: Check it – if OK: Don’t do anything If not OK: Inform SKAT of incomes from abroad and deductions not already registered – submit the information via E-tax You will receive new tax assessment notice – see it in your E-tax. 17-09-2018

Information in English on skat.dk Under these headlines you can find a lot of Web-texts about different subjects – this is just an example. 17-09-2018

Information in English on skat.dk 17-09-2018

Information in English on skat.dk - and at the bottom of skat.dk/english: 17-09-2018

Guides in English (P.130): You can read this example in both English and German 17-09-2018

Guides in English (P.116/P.108) – Examples of annual tax assessment notice (P116) (P108) Also these examples of an annual income tax notices you can read in English and German. 17-09-2018

In the E-tax folder you will find: Your preliminary income assessment and tax assessment notice. The actual tax assessment will always be the "current“ but you can also view the previous ones Information reported to SKAT by your employers, banks, pension funds, etc. (Skatteoplysninger) Current salary and E-tax card; you can see information about your payslips and which employer uses your tax card (Indkomstoplysninger) A "log" which is a summary of the entries you or SKAT have made in E-tax (Profil  Oversigt over hændelser) Information about your DK property (Skatteoplysninger  Ejendomsoplysninger) 17-09-2018

Advantages of using TastSelv If you have any changes to your preliminary income tax assessment or your tax assessment notice, you can use TastSelv at skat.dk. Here you can: View your new tax assessment notice right away Click on the text for each box to see detailed information about your income, deductions etc. Register your e-mail address etc. and get information from SKAT 17-09-2018

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 Some corrections cannot be made by yourself (locked fields)! You have to contact your employer, bank etc. and ask them to send a correction to SKAT The self-service site at skat.dk opened 14 March, 2016. 17-09-2018

TastSelv (E-tax) on the internet Open skat.dk – choose English and log on 17-09-2018

TastSelv (E-tax) on the internet 17-09-2018

TastSelv (E-tax) on the internet 17-09-2018

Annual tax assessment 17-09-2018

Deduction for transportation Log on TastSelv Choose ”Ret årsopgørelsen” Click on ”Befordring (kørselsfradrag)” (If the calculation is OK; click on ”Gå tilbage til årsopgørelsen” - or Click ”Ret” (Change) Fill in the boxes Click ”Overfør beløb” (Transmit) Click ”Godkend” (Confirm) Click ”Fortsæt” (Continue) You can see your new Annual Income Tax Assessment notice 17-09-2018

Income from abroad 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 inform SKAT Log on and choose: Scroll down to “Egen virksomhed eller udlandsforhold” (own company or income from abroad) 3. Click “Fortsæt” (continue) 4. Click “OK” 5. Scroll down and click on the blue arrow 17-09-2018

Income and/or property from abroad Fill out the boxes, click “Godkend” (Confirm) Click “Retur”; Click “Godkend” Click “Fortsæt” (Continue) You can now see your new annual tax assessment 17-09-2018

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 2.2 % p.a. After 1 July you must pay an interest of 4.2 % of the amount. 17-09-2018

Day-to-day interest (underpaid tax) Example of calculation of interest (before 1 July 2016): Thomas Jensen has paid too little tax: DKK 15,000. He chooses to pay the tax on 30 March. He must pay interest for 91 days (from 1 January to 30 March) as follows: Underpaid tax DKK 15,000 Day-to-day interest DKK 15,000 x 2.2 % x 91 days = DKK 82 365 days Total payment DKK 15,082 Total payment after 1 July 15,000 x 4.2 % = DKK 15,630 17-09-2018

Pay Outstanding tax – using Dankort Click on ”Betal nu” (Pay now) Click on ”Betal restskat for 2015” Type the amount and click on ”Beregn rente” (calculate day-to-day interest) Click on ”Betal med Dankort” Type the numbers from the card and pay In a few days you can see your receipt in your e-tax folder (Betaling) 17-09-2018

Pay Outstanding tax from a foreign bank account 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 Remember to type your Danish civil registration number (cpr number) and which year the payment concerns. 17-09-2018

Overpaid tax (to NemKonto) If you have paid too much tax, you will automatically have a tax refund transferred to you from SKAT to your NemKonto You will get a tax-free interest of 0.5 % of the amount The tax refund will be paid to your NemKonto in April. 17-09-2018

Overpaid tax (to foreign banks) If your tax assessment notice states that you have paid too much tax, the amount will be transferred to your NemKonto – if you do not have one, you can: Register a foreign NemKonto – nemkonto.dk  Deutsch/English – you will receive your overpaid tax in approximately 2 weeks after your registration (earliest medio April) or Please inform SKAT of your IBAN number and SWIFT/BIC code as well as your Danish civil registration number (cpr number) by e-mail Please note that it may take up to 90 days before the tax refund is credited your foreign account. SKAT would never ask you in an e-mail to enter your credit card details. If you are asked to do so in an e-mail which seems to be from SKAT, then it is a fake e-mail. We urge you to delete the e-mail without clicking any links in it. 17-09-2018

Leaving Denmark Please remember: Inform SKAT about your residence and other relevant information about your stay abroad when leaving Denmark Fill in form no. 04.029 EN and send it to SKAT and register at Borgerservice. If you are moving abroad (including to Greenland or the Faroe Islands), SKAT will consider your tax liability. 17-09-2018

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 Very often SKAT does not have the 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 that is why SKAT retains any overpaid tax until we know for sure that your stay has ended So please let us know exactly when you leave Denmark for good! register by Borgerservice and send form 04.029 EN by e-mail to SKAT. 17-09-2018

Binding ruling For a fee of DKK 400 it is possible to obtain a legally binding ruling from SKAT on questions about taxation in Denmark. For example, you can ask SKAT whether you as an employee can get tax-free travel allowance or not. Your question must be specific and relate to your own situation – you can not ask about general or political issues. 17-09-2018

Contact SKAT If you cannot find the answer at skat.dk – contact SKAT: Income from or property abroad Phone 72 22 28 92 Income/deductions from Denmark Phone 72 22 28 28 (See opening hours on skat.dkEnglishContact) E-mail via E-tax (TastSelv) If you cannot find the answer you need at skat.dk, and if we cannot help you over the phone, we will set up a personal appointment for you with one of our staff. 17-09-2018

Thank you for your attention! Questions? HUSK – der er yderligere et dias  Thank you for your attention! 17-09-2018

Evaluation scheme Please help us – fill in the evaluation scheme before you leave the meeting. By answering our questions you help us optimize these meetings. Please leave the scheme on the table 17-09-2018