Majority of Danish Taxpayers Slated to Receive Tax Refunds This Friday
Refund Time! Danish Tax Agency Shells Out Billions in 2024
Ring that bell, folks! It's refund season in Denmark. The Danish Tax Agency is doling out approximately 25.4 billion kroner to taxpayers who overpaid their dues in the calendar year 2024 [1].
Pack your wallets, Denmark!
You read it right! A whopping 3.8 million taxpayers across Denmark, making up around 82% of the population, are set to receive a sweet windfall in the form of tax refunds. The average refund amount? A cool 6,621 kroner per person [1].
Timing is everything
Ready to lighten your load? The Danish Tax Agency processes these refunds in installments throughout the year. Last year, a massive payout amounting to around 25.4 billion kroner was handed out in late April [1].
So, keep your eyes peeled for your share of the loot. But remember, if you realize you haven't paid enough according to your unique circumstances, make sure you correct it promptly. Repayments are due by July 1st [1].
All about the preliminary tax returns (forskudsopgørelser)
This system lets you regularly adjust your preliminary tax statement to factor in your current income and deductible expenses, helping you avoid over or underpaying taxes throughout the year.
However, according to Tax Minister Rasmus Stoklund, many people prefer to play it safe and pay a little more in taxes. "Even though it's their own money, most people find it reassuring when the number is green," Stoklund shared with Ritzau [2].
What if you underpaid?
Whoa there, cowboy! Nearly 800,000 Danes found themselves on the wrong side of the tax fence last year, with over 7.8 billion kroner owed back to the state [1].
Don't be one of them! Make sure your 2024 tax return is a-okay to avoid accidental underpayments. Remember, submitting an accurate tax return isn't just about your annual refund, but staying on the right side of the taxman to avoid penalties.
Outstanding debts and catching up
Good to know! In case you've got outstanding debts with the public sector, be aware that a 2019 rule change authorizes the Danish Debt Collection Agency to claw back public debt by withholding your tax refunds. The Agency managed to snag around 20 billion kroner over the last five years using this method [1]
"I'm ecstatic that the Debt Collection Agency is able to recover public debt through withholding tax rebates. It's only fair that debts get paid this way," declares Stoklund [1]
Deductions, deductions!
Did you know? Individuals can still claim deductions for share losses, even from past bankruptcies, by accurately documenting the original purchase price and reporting the loss in their annual return [3].
On a different note, new tax reporting rules for corporations are in line with the EU's Pillar Two directive. While these changes mainly concern corporations, they don't directly affect the individual tax refund process [4][5].
Let's chat!
What do you think about the Danish tax refund system? Be sure to share your thoughts in the comments section below and don't forget to visit news@our website if you have any questions or suggestions for our journalists. Make your voice heard!
Sources[1] Official Danish Tax Agency Press Release[2] Ritzau News Agency[3] Danish Tax Agency Guidelines[4] EU Pillar Two Directive[5] Danish Ministry of Finance Guidelines
- With the Danish Tax Agency releasing billions of kroner in tax refunds this year, it's important to keep track of your personal-finance and submit an accurate tax return to avoid underpayments.
- Many Danish taxpayers might find themselves needing to catch up on outstanding debts, as the Danish Debt Collection Agency can withhold tax refunds to recover public debt, having snagged around 20 billion kroner over the last five years.
- If you've experienced share losses in the past, it's worth noting that you can still claim deductions for them by accurately documenting the original purchase price and reporting the loss in your annual return.
- As you navigate the Danish tax refund system, remember that the average refund amount for 2024 is around 6,621 kroner per person, with the refunds being paid out in installments throughout the year, similar to the pattern seen in 2023.
- The Danish Tax Agency encourages taxpayers to utilize their preliminary tax return system, known as 'forskudsopgørelse', in order to adjust their preliminary tax statement and avoid over or underpaying taxes throughout the year, which can ultimately affect your personal-finance and business operations.
