The annual final tax return for 2018 can be filed from 11 March 2019 and must be filed before 1 May 2019 or 1 July 2019 depending on your tax status on your preliminary tax return for 2018.
If you are tax resident in Denmark your worldwide income and foreign assets must be filed. If you are limited tax liable (“begrænset skattepligtig”) only certain specified income from Danish sources must be filed.
Unless otherwise has been agreed you will only receive electronic information of your tax return and tax assessment from Skat. So even if you do not receive any letters from Skat the tax return still has to be filed. The tax return must be filed electronically as a basis. You must be aware that even if you have filed a correct preliminary tax return for 2018 and Skat thus have your figures, you still have to file all income and expenses that are not automatically reported to Skat in your tax folder. This includes all foreign income and most foreign assets.
Individuals with the following kind of income or tax status should always consider taking advice when filing the Danish tax return:
- If subject to 27% special expat taxation
- If receiving income subject to exemption taxation with progression rules
- If employed by International Organisations
- If employed by a non Danish registered employer
- If receiving foreign source pensions
- If having cross border transactions such as purchase or sale of foreign assets
- If owning real estate in the home country
- If married and spouse residing in home country
- If having tax status as tax resident in the home country while living in Denmark
- If arriving in or leaving Denmark in the relevant tax year
Payment of income taxes for 2018 that has not been paid before 1 January 2019 will be added interests for late payment and the interests are higher the later you pay.
Interests on underpayments of income taxes for the tax year 2018:
Paid from 1.1.2019 – 30.06.2019: 2,2 % p.a. day to day interest.
Paid after 1.7.2019: 4,2 %
Interests on overpayment of income taxes for the tax year 2018: 0 %
If you have income that has been taxed in another country than Denmark, this does normally not exclude Denmark from taxing the same income because of the worldwide taxation basis principle. If a double taxation agreement states taxation of an income in the country of source this does not exclude taxation in the country of residence. Typically this implies a Danish taxation, if Denmark being the country of residence, equivalent to the difference between the Danish income tax and the income tax from the country of source.
The Danish income tax rates are high and the tax system is complicated with many rules and choices including complex tax calculations, which are hard to understand and control. Many foreigners with Danish tax liabilities are thus in need of advice to feel comfortable with the taxes to be paid. Many tax assessments for individuals with crossborder filing obligations are incorrect and you thus have to be very cautious controlling that your tax liability is in accordance with the tax rules.
If you need help with your tax return for 2018 you are welcome to contact a professional experienced tax advisor at firstname.lastname@example.org or call Inwema at +45 3169 3169.