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Deductibles and Allowances

Stating your deductibles and allowances

Some of the tax deductions and allowances to which you are entitled will automatically be included on your income assessment. However, you must report certain deductions and allowances yourself on your preliminary income assessment and income tax return. Note that even though some deductibles are included on your income assessment, you are still required to check that the information listed is correct and report any discrepancies to SKAT. You can see where your deductibles are listed on SKAT’s example of a preliminary income assessment.

Examples of allowances and deductions

Generally, the idea is that people should only pay tax on disposable income. For example, you are entitled to deduct expenses if you:
  • Travel more than 12 kilometers in each direction between your home and work
  • Pay a membership fee to a trade union and/or an unemployment insurance fund
  • Make payments to a private pension scheme
  • Pay interests expenses
For more examples of allowances and deductions, see the leaflet Tax in Denmark – An introduction for new citizens and visit Work in Denmark’s website.

Pension plans

You are entitled to tax allowances and relief on the contributions you pay into an approved pension plan or plans. However, in order to qualify for the allowances on, and deductions from, payments toward a pension plan, the plan must be approved by SKAT.

Learn more about the Danish tax system concerning pension plans in SKAT’s guides: Tax and pension plans - for those with a pension plan in Denmark or another EU or EEA member state and Tax and pension plans - for migrant workers who come to Denmark from another country to work.

Contacts and further information

Visit SKAT’s website: www.skat.dk.

Tax in Denmark, An introduction – for new citizens.
About tax – for people residing abroad and working in Denmark.

If you have any questions, call SKAT on telephone +45 72 22 27 95.
 

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