Give attention to your preliminary tax return 2020

Have you been posted outside Denmark or into Denmark? Have you purchased a real property outside Denmark? Have you been working across borders? Or have you had income from abroad?

If so, it is a good reason for paying attention to your Danish preliminary tax return 2020. It is typically among the four mentioned situations that may result in a unpleasant tax surprise by the end of 2020.

By the end of November 2019 the preliminary tax assessment for 2020 have been available at skat.dk, and here it is important not to accept that all automatic reporting are sufficient. If your situation has changed significantly in 2019, it should also reflect your preliminary tax assessment for 2020. If your tax withholding percentage is too low, it might feel pleasant in the beginning, but in the end it will result in a bad headache due to a punitive tax.

Many individuals having lump sum income in a year experience that Skat without further notice includes the same income as in previous years. You should therefore react to this, since it often implies producing of incorrect B-tax rates. Other might have been working abroad, retired, been married or divorced, have sold real property, have relocated abroad or has relocated back to Denmark. In all this special cases an additional reason for reviewing the preliminary tax return for 2020 is relevant.

All the time during 2020 it is possible to make changes in the preliminary tax return 2020

Have you changed your tax status, for instance instead of being tax resident being non-tax resident, you will have your final tax assessment later, if this has not been reflected in the preliminary tax return for 2020.

If you did not change your preliminary tax return for 2020 before end of the year, you still have the possibility to change this during 2020. However the case is that the later you make the changes, the more often Skat would be interested in the reason for the corrections.

If you are in doubt, we should be glad to assist you. We have many years of experience of complicated tax situations across the borders. Do contact us at info@inwema.dk and have your preliminary tax return brought into good shape.