Here we have gathered the information that allows you, as a citizen, to access the tax system information you need.
Below is a brief introduction to how the tax year works. The introduction covers the tax year in five main topics:
A Tax Year consists of both an Income Year following the 12 months in the calender year, where you earn money, have deductions and pay taxes. A tax year also includes activities prior to the income year, such as advance tax registration and the issuance of the tax card.
A tax year also includes activities after to the income year, such as Return Tax and Final Tax Settlement.
In total, a tax year lasts 21 months. It extends from October the year before and to August the year after the income year.
It may seem confusing that several tax years overlap.
We hope this introduction can provide a bit more clarity.
In October prior to the income year, the Tax Agency sends a form for estimates for future incomes to people with private business, people with income from non-salaries and many others.
You will receive the form for estimates for future incomes via e-Boks digital mail.
You can also get the form from Sullissivik.gl.
Please, use the form for your advance tax registration of expected incomes and deductions.
The form for Advance Tax statement contains the information we have about your economic situation.
It is especially important to validate or change the information in your advance tax registration form if:
If you state your expected incomes and decuctions correctly, The Tax Agency can give you the correct tax rates on your tax card the following year.
You know your economic situation better than we do. Therefore, it is important that you provide us with correct information.
The deadline is November 15th at Sullissivik.gl.
You can contact the Tax Agency's service desk with new information, if your economic situation changes after the deadline.
When you have filled in your advance tax statement form, we will give you a Tax Card with the correct deduction rate and B-tax rate.
In December you will get the Tax Card based on the information we have about your economy in your digital mailbox e-Boks.
You give the Tax Card to your employer.
If the primary tax card is marked with an X, your employer has already received it via digital mail. In that case, the primary Tax Card states who have your Tax Card.
If you change employer, you can get a new Tax Card from the Tax Agency.
When your employer has your tax card, you are ready to earn wages and pay tax.
If you have more than one employer, the other employers must recieve your secondary tax card (bikort). A secondary tax card is a tax card with tax rate but without deductions.
If you are selling fish or hunting catches, you will need to use the special Fish Tax Card every time you sell your fish.
If you have a low income over the year, and seasonal emplyment, you can use your Free Tax Card. A Free Tax Card is a tax card where your deductions are not spread across the year. Your employer must note your paid salary on the back of your free tax card. Once the free tax card's maximum amount is used up, you will need to pay taxes on your salary.
If you are an employer, you will need the tax card of your employees in order to correctly pay their wages.
Now you are ready.
Throughout the income year, you will earn money, and you will pay taxes.
You can earn A-income, of which you pay taxes when you are paid. A-income sources are typically salaries.
You can also have B-income. B-income sources are not taxed when you get them, but they are also subject to taxation. B-income sources are for example interest rates, divided returns, students support and incomes from personal private businesses.
Tax deductions are part of your income you can deduct from your income before calculating taxes. Hence, it feels tax free.
If you are a wage earner, your tax deductions are usually levelled out over the year.
The first 48.000 DKK you earn is tax free. They are divided over the year.
You also have a standard deduction of 10.000 DKK per year.
And you have tax free B-income of 5.000 DKK.
You get tax deductions from your interest rates payments.
If you run a private business, you can get tax deductions from all costs used to generate your company income.
If you run a private business, you must save documentation for both your your expences and your income of your business. Then it is easier to make your accounting after the end of the year.
The income year ends December 31st.
New Years evening we celebrate the beginning of a new income year. And new deductions.
When the income year has passed, you must report your earnings and your deductable expences thorughout the year to us. This is called Tax Return.
The Tax Agency has some information about your economic situation. For example, what you have paid in interest rates, your union membership fee and your wages reported by your employer.
We will send them to you via the digital service e-Boks as a premade tax return form.
It is your responsibility to check if the information is correct.
The information the Tax Agency do not have are your deductions and incomes from your private business.
The Tax Agency also requires information about your dividends from foreign securities as well as interest from foreign accounts.
If you run a private business, you are always obliged to send in both your final account and Tax return form.
The deadline for sending in you final account and your tax delaration is 1st May. However, if run a private business and you report digitally, the deadline is 15th May.
If you do not provide the Tax Agency correctly with the account and tax return form in time, we will charge 200 DKK per day up to 5.000 DKK.
The Tax Return form is also your way of infom about your expences for running you business. And to get tax deductions from these expences.
For private businesses with an income below 1,0 mill. DKK there is a simple form for tax return. You can use this instead of your final account. Please note that you must keep your documentation.
In August af the income year we will send you your Final Tax Settlement.
This is a summary of your taxes, income and deductions including employment deductions for the prior year.
If you have paid to much in tax, you will get the money back as surplus tax.
If you have dept to a puclic company, it is paid before you can have any of the surplus tax paid to you.
Surplus tax
Supplus tax can only be paid to you if you have the account type ‘NemKonto’ (Easy account).
Your bank can register your NemKonto. The Tax Agency cannot activate your NemKonto.
You can also contact NemKonto Support at phone number 35 50 20.
The call is free of charge. Opening hours are Monday to Friday 10 AM to 2 PM.
The expected processing time from your account registration in the bank is 8 working days before the Tax Agency can pay your surplus tax.
You must have the identification service MitID (My ID) to activate the NemKonto. The municipal service desk can assist you with your MitID account.
Residual Tax
If you are behind on taxes, you will be charged residual tax.
If the amount of back taxes you owe is under DKK 16,981, it will be included in your deductions for the following year.
If the amount exceeds this, the remaining balance will be collected in three installments.
Residual tax is normally charged monthly over three months: September, October and November.
If your residual tax is due for payment in 2025, you can pay the amount to the Tax Agency no later than November 20th. By doing so you will avoid a 6% added rate.
If you pay your residual tax, you will get at Tax Card for the following year with correct tax deductions.