Sound commuters lose a tax deduction of DKK 42,900(Taxwatch (Tax news in english))
19-05-2010 07:20
Af
Anders Kiærskou
A non resident individuals working in Denmark, stand to lose a tax deduction of DKK 42,900. This follows a proposal for a new bill by the Danish Government. If the proposal is adopted unchanged, the special spouse deduction will be abolished as of 2011.
The consequence for individuals concerned is noticeable, as their Danish tax will increase by more than DKK 1,000 per month.
The proposed bill will affect individuals, who are married and working in Denmark without being resident in Denmark for tax purposes. This primarily concerns individuals residing in southern Sweden or northern Germany, who commute to their jobs in Denmark each day.
According to the current rules, these individuals are allowed to deduct an additional personal allowance of DKK 42,900 on their Danish tax returns provided that they are married and the spouse does not pay tax in Denmark. It is a condition however, that they do not use the special cross-border tax rules.
The Government also proposes that the deduction for contributions to an unemployment fund is abolished for individuals who are taxed as non-residents in Denmark if deduction is allowed in the home country. Individuals entitled to use the special cross-border tax rules remain unaffected.
According to the proposal, the changes - if adopted - will automatically be included in the preliminary tax assessment for 2011 calculated in the autumn of 2010.
Questions can be addressed to Anders Kiærskou at aek@bdo.dk
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