The preliminary tax assessment for 2024: Get five good tips
If you have financial circumstances that extend beyond national borders, there is an extra good reason to look closely at the preliminary tax assessment for 2024. The automatically generated preliminary tax assessment will hardly be able to capture the conditions that apply to you. You may have bought or sold a house abroad, perhaps you have been posted – or you have income from abroad… the possibilities are many.
Do you pay tax in more than one country? Read more here
Here are five good tips for checking the preliminary tax assessment for 2024
Check your preliminary tax assessment (in Danish: forskudsopgørelse) already when it appears in your personal tax folder on skat.dk in November 2023, but also repeat the exercise a few months into 2024. Then you have seen how the first months turn out, and you can more easily prepare an overview. The preliminary tax assessment can easily be corrected several times during the year, if necessary.
It can take a long time for any excess tax to be paid, and the better you are at making sure your preliminary tax assessment reflects the facts, the longer your money will be in your wallet.
Many, many things can cause you to change your advance statement: Moving to and from abroad, changed salary, marriage/divorce, owner-occupied home, company profits or rescheduled loans – or perhaps you have gone on maternity leave can be mentioned in turn. On parttime? Or retired?
If your income is on the good end, it is particularly important to look at the preliminary tax assessment. If you go over the top tax limit of DKK 568,900, your tax rate will increase. Because then you have to pay an additional 15% in tax on the income above this limit.
While you’re at it, anyway, look at your 2023 numbers as well. Does your preliminary tax assessment for 2023 seem correct? Otherwise, you may still have to fix it during the final months of 2023.
Do you need help checking your preliminary tax assessment? Feel free to contact us, we have many years of experience in tax matters across national borders.
Did you know that…
… preliminary tax assessment from now on also show how much property tax you have to pay? The property value tax (in Danish; ejendomsværdiskat) has always been listed on the preliminary tax assessment and thus on the annual tax return, but the other housing tax, the land tax (in Danish: grundskyld), has been collected twice a year by your municipality. From now on, you can see it all on the preliminary tax assessment – so it’s also worth checking before 2024 starts.
What is the preliminary tax assessment?
The preliminary tax assessment is a running budget of your income and taxes, but until you’ve checked it yourself, we might as well call it a guess. The tax authorities do not have real insight into your circumstances; the preliminary tax assessment, as it appears when it appears in your tax folder, is typically a projection of the conditions that applied to you in the previous year.
Much may have changed in your life, which the tax authorities’ algorithms do not exactly catch.
Read about taxation of individuals when relocating to Denmark…
We see a lot of people with errors in the advance statement, and this applies especially to people who have relationships that go beyond national borders. We would love to help – write to us at info@inwema.dk or call +45 3169 3169.
