Most individuals, who are to receive a tax refund for 2016, can expect the refund to be transferred to their “NEM-bank account” on 11 April 2017. The tax statement issued on 13 March 2017 will show whether a refund is due.
The Danish tax authorities have published the schedule for the annual tax return process for individuals concerning the income year 2016.
An automatically generated tax statement will be available for most individuals in their electronic tax file at www.skat.dk on 13 March 2017. However, it is usually possible to view the tax statement a few days before the official release date.
The tax return
If a tax statement for 2016 is not automatically issued, a tax return must be filed. However, filing a tax return for 2016 may also be required if a tax statement has been issued.
It is the responsibility of the taxpayer to ensure that all taxable income is included on the tax statement. Hence, if the automatically generated tax statement is incomplete, the taxpayer must file a tax return.
Individuals coming to Denmark from abroad to live and work are often required to file a Danish tax return.
The automatically generated tax statement is only based on information reported to the Danish tax authorities by Danish employers, banks etc.
However, individuals coming to Denmark from abroad often have taxable income from foreign sources that is not automatically reported to the Danish tax authorities.
In such cases, the tax return for 2016 must be filed no later than 3 July 2017.
Payment of tax refunds
Tax refunds for 2016 will be paid including a tax-free interest of 0.5 pct. The refund is automatically transferred to the taxpayers “NEM-bank account”. Most taxpayers that are due for a tax refund will receive it on 11 April 2017.
If the refund exceeds DKK 100,000, payment will be made later, as the tax statement must be reviewed manually by the Danish tax authorities to ensure that the large amount is not due to an error. In such cases, the payment will be made by the end of August 2017.
The above article is taken from tax:watch, our electronic English newsletter on Danish Tax and VAT matters. tax:watch is issued on the last Friday of each month and is free of charge. Please sign up here.