The coronavirus means that many people’s lives and financial situations have changed. As a result, their tax will be affected in 2020 and 2021. Below, you will find information about things you should be aware of. Maybe you should change your preliminary income assessment for 2021 to avoid paying outstanding tax next year?

What to correct?

See and correct your preliminary income assessment

If you have your frozen holiday pay paid out

If you choose to have your frozen holiday pay paid out, we recommend that you add the relevant amount before tax to your earned income in field 201 in your preliminary income assessment (meaning that you increase your earned income with the amount you want to have paid out). 
This is particularly important if you pay top-bracket tax, or if your total income is close to the top-bracket tax limit (annual income in 2020 of DKK 577,174 or monthly income of DKK 48,098). If you do not correct your preliminary income assessment, you risk having to pay outstanding tax when you receive your next tax assessment notice in March 2021.

Losing your job

If you lose your job, you should correct your earned income in field 201 of your preliminary income assessment. Changing your expected income from salary to unemployment benefits makes a big difference as you automatically get deductions on your preliminary income assessment when you earn an ordinary salary: job allowance, employment allowance and additional pension deduction.

If you start receiving unemployment benefits, you should also include these in your preliminary income assessment. You enter them in field 304. Search for the field or find the field Arbejdsløs/fleksjob (Unemployed/flex job) under Oftest tilføjede felter (Frequently added fields).

Read more about what to do if your income changes.

Reduced salary

If your salary is reduced, you should correct your earned income in field 201 of your preliminary income assessment as you automatically get deductions on your preliminary income assessment when you earn an ordinary salary: job allowance, employment allowance and additional pension deduction.

You are not entitled to a deduction for transport between home and work if you work from home. So, if you have fewer days than expected where you travel to and from work, you should change your deduction for transport between home and work in field 417 of your preliminary income assessment.  The same applies if you lose your job and you therefore do not travel to and from work.

Read more about deductions for transport between home and work.

If you are paying B-tax, you do not have to pay B-tax in April or May as these payment deadlines have been extended to two months that are payment-free today:

  • The payment deadline on 20 April has been extended to 22 June 2020
  • The payment deadline on 20 May has been extended to 21 December 2020

If you are using direct debit (Betalingsservice) to pay your B-tax, you do not need to do anything further as your payments will automatically be changed to the extended deadlines. If you are using an online bank, you should simply pay by the extended deadline.

If you normally have travel expenses (deduction for food and accommodation when you travel for business purposes) and this amount has changed, you should change it in field 429 of your preliminary income assessment.

Read more about travel expenses.

If, as a result of corona/COVID-19, you are working more from home in Denmark, you may not only be liable to tax in Sweden on the income you earn from your Swedish employer.

Read more in our Danish-language guide Coronaepidemi og øget antal hjemmearbejdsdage for danske Øresundspendlere (Corona epidemic and increased number of days working from home for Øresund commuters).

If, due to the corona situation, you have worked more from your home in Sweden than you usually do, you may also be taxed in Sweden on the salary you earn from your Danish private-sector employer.

The Øresund agreement  

A special tax agreement exists between Denmark and Sweden (the Øresund agreement). According to this agreement, you may be taxed in Denmark on work that is carried out in your home in Sweden or during business trips etc. It is, however, a condition that at least 50% of your working hours were in Denmark during a given 3-month period.

How to calculate a 3-month period

•    The condition that your working hours in Denmark must make up at least 50% during a 3-month period means that the number of working days you had in Denmark must be matched against the total number of working days you had in any given 3-month period.
•    When you calculate your working days, you should include any holidays and sick days as working days in Denmark.
•    Ordinary weekly days off, such as weekends, public holidays and time off in lieu should not be included when calculating your number of working days.
•    If you only work part of the day in Denmark, it still counts as a full working day in Denmark.
•    A 3-month period may begin before and finish after the turn of a year.

If at least 50% of your working hours were in Denmark in any given 3-month period, your total salary from your Danish employer should be taxed in Denmark.

When does Denmark stop having the right of taxation of your total salary?

Denmark no longer has the right of taxation of your total salary if you have not worked in Denmark for at least 50% of your working days during a given 3-month period as laid down in the Øresund agreement.
In that case, the salary you have made for the days you have worked from home and other work you have carried out outside Denmark will be taxed in Sweden.

Please note that a 3-month period is not necessarily based on whole calendar months. A 3-month period may start at any given day of the month, for example from 8 January to 7 April or from 15 January to 14 April.

Other months are calculated as separate calendar months, unless you meet the requirement for at least 50% of your working days to have been in Denmark by calculating another 3-month period instead of separate calendar months.

The salary you get from your Danish employer for the work you carry out in Denmark is always taxed in Denmark. This applies regardless of whether the working days in question are covered by the Øresund agreement.

Read more in our Danish-language legal guide

Read more in Danish about the Øresund agreement

Things to be aware of in your tax assessment notice for 2020 and possibly 2021

If your number of working days outside Denmark is so high that not all of your salary is taxed in Denmark, you are responsible for calculating and declaring the part of your salary to be taxed in Denmark yourself.

Tax assessment notice for 2020

Your total salary appearing on your first tax assessment notice for 2020 is declared by your employer. Your salary minus labour market contributions (AM-bidrag) and A-tax (tax withheld at source) appears from box 11. Any part of your salary that has been declared as tax-free in Denmark appears from box 16.

Your tax assessment notice must be changed to the effect that any part of your salary that is taxed in Denmark is included in box 11. The part of your salary that is not taxed in Denmark should not be included in your tax assessment notice and should therefore be deleted from box 16.

However, you cannot change the numbers in boxes 11 and 16 of your tax assessment notice yourself. Instead, please send us the figures for how much of your salary that is taxed in and outside Denmark, respectively.

This is what you should do

1.    Log on to E-tax for individuals (TastSelv)
2.    Select 'Ret årsopgørelsen/oplysningsskemaet' (Change your tax assessment notice/tax return).
3.    Next to box 11, click ‘Se hvor beløbet kommer fra’ (See where amount comes from)
4.    Click ‘Send mail’ (Send email)
5.    Write ‘Øresund agreement’ in the subject field and write the figures for your salary taxed in and outside Denmark, respectively.
6.    Attach documentation or calculations for the part of your salary you believe should be taxed in Sweden
7.    Click ‘Send’

If you pay less into your private pension scheme in 2020 than the amount stated on your preliminary income assessment, you should change the amount in field 436 (for example private life pension schemes) or field 416 (for example private annuity and temporary old-age pension schemes) on your preliminary income assessment.

Can I get a deduction for electricity and Internet when I work from home?

No, you do not get a tax deduction for electricity and Internet.

Can I get a deduction if I use my own pc or phone when I work from home?

No, you cannot.

Can I get a deduction if I have a home office?

You are not entitled to a tax deduction if you have set up a temporary home office in connection with the corona crisis (e.g. in your living room, children's room or guest room).

However, you are entitled to a tax deduction if you have a permanent home office (which is not used for other purposes). Note that there is no deduction for the initial expenses up to DKK 6,300. Read more about deduction for home office

If you have additional expenses in connection with working from home during lockdown, you should speak to your employer.

The deadline for correcting your tax assessment notice has been extended to 1 September 2020 (due to the corona situation).

See the extended deadlines in the list below. Some of the deadlines are in August and December.

It is an advantage to make corrections as soon as possible

Even though the deadlines have been extended, it would be an advantage for you to make the corrections as soon as possible.

If you are getting a tax refund, you will get it sooner than if you wait to correct your tax assessment notice.

If you have outstanding tax, you can save money if you pay it before 1 July 2020. The deadline for voluntary payment of outstanding tax has not been extended.

If you pay your outstanding tax before 1 July 2020, daily interest of 2% will be added up to and including the payment date. If you choose to pay after 1 July 2020, you will pay a 4% fixed additional interest charge.

Any outstanding tax you have up to DKK 21,320, including the additional interest charge, will be included in your tax for 2021.

Any outstanding tax you have over DKK 21,320, including the additional interest charge, will be charged in three instalments in August, September and October. We will notify you via digital post when it is time to pay the first instalment. Please note that the extended declaration deadline of 1 September may mean that your instalments may be charged at a later point in time. 

Read more about payment of outstanding tax 

List of extended deadlines
AreaOriginal deadlineNew extended deadline
Deadline for correcting tax assessment notice 1 May 2020 / 1 July 2020 1 September 2020

Deadline for correcting the following information about non-Danish income matters:

  • limited and full tax liability
  • cross-border workers
  • shares when you move away from Denmark (deferral of tax levied on transfer of tax residence)

Further information about the cross-border worker rules

Read more in Danish about tax on shares if you move away from Denmark (deferral of tax levied on transfer of tax residence)

1 July 2020 1 September 2020

Deadline for opting to/changing option to be taxed according to the cross-border rules and the rules for limited and full tax liability:

30 June 2020 31 August 2020

Deadline for correcting the following non-Danish information on your tax assessment notice:

  • international hiring-out of labour
  • taxation of seafarers
  • hydrocarbon tax

Read more about hiring employees from outside Denmark

1 May 2020 1 September 2020
Deadline for opting to/changing option to be taxed according to the rules for international hiring-out of labour, taxation of seafarers and hydrocarbon tax: 30 June 2020 31 August 2020

Deadline for notifying the estate of a deceased person if there will be outstanding tax for the year before the person died:

The tax claim must be submitted no later than three months after the tax return filing deadline for the income year before the year the person died.   

Read more about taxation on death (in Danish)

As a result of the coronavirus, certain rules have changed and therefore you should be especially aware of the following:

Living in Denmark and working abroad

Reduced tax on non-Danish earned income

Read more (in Danish) about the changes that may affect you if you live in Denmark and work abroad

Extended rules for limited tax liability

Full tax liability and extended rules for limited tax liability in the period affected by the coronavirus 

Read more about the extended rules for limited tax liability

Employed under the tax scheme for non-Danish researchers

If you are employed under the tax scheme for non-Danish researchers, you should be aware of changes to that scheme.

Read more about changes to the tax scheme for non-Danish researchers

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