The Danish tax return for 2014

In recent years, there has been a trend towards increased obligations of businesses etc. to report income to the Danish tax authorities in order for the tax authorities to have sufficient information to issue statements of taxable income without awaiting the tax payers to file tax returns.

Most recently, this trend is even extended so far as to include income on the statement of taxable income that do not stem from actual income reported by third parties to the Danish tax authorities. Instead, income that is merely an estimate based on previous tax assessments are included on the statements of taxable income.

For example, an individual who lets out his home in Denmark during an expatriation period abroad may find that the Danish tax authorities have estimated a surplus from this business even though the individual have yet to calculate and include the correct amount on his Danish tax return.

The practice of including as much information as possible on the initially issued statements of taxable income – even if the information is likely incorrect - without awaiting tax returns from the tax payers does generally not extent to foreign income, however.

For example, many foreign individuals who are expatriated to Denmark from abroad receive income from foreign sources that the Danish tax authorities are unaware of.

In March 2015, many individuals will be able to view their initial statement of taxable income for 2014 in the electronic tax file with the Danish tax authorities. This marks the beginning of the period where tax returns for 2014 can be filed.

For the above reasons it is important that individuals review their statements of taxable income and file a tax return if necessary. If required, BDO can be of assistance.

The above article is taken from tax:watch, our electronic English newsletter on Danish Tax and VAT matters. tax:watch is issued on the last Friday of each month and is free of charge.