Deductions under the cross-border rule

 

Deductions under the cross-border rule

If you are taxed under the cross-border rule, you may be entitled to the same personal and family-related deductions as someone who lives in Denmark. The cross-border rule does not change which of your income is taxable in Denmark.

Depending on your circumstances, you may be entitled to:

• personal allowance, personfradrag
• employment deduction and job allowance
• joint taxation with your spouse
• travel deduction, befordringsfradrag
• deductions for unemployment insurance fund, a-kasse, fees
• deductions for trade union membership fees
• deductions for Danish private pension contributions
• deductions for interest on loans and Swedish student loans, CSN
• deductions for spousal maintenance and child support payments
• deductions for gifts to certain charities
• deductions for eligible household services and home improvements

 

If you have limited tax liability

If you live in Sweden and work in Denmark, you normally have limited tax liability in Denmark. If you do not choose taxation under the cross-border rule, the deductions available to you are more limited.

See our page about deductions with limited tax liability

 

Personal allowance

In Denmark, you have a personal allowance, personfradrag, which reduces the income on which you pay municipal and state tax.

Under the cross-border rule, you may also be able to use your spouse's unused personal allowance if you live together and your spouse has little or no income.

Read about personal allowance and tax liability at skat.dk

 

Employment deduction and job allowance

If you earn a salary or have a business profit that is subject to labour market contributions, you automatically receive an employment deduction and a job allowance.

See current employment and job allowances at skat.dk

 

Travel deductions

If you travel between your home and your workplace in Denmark, you may be entitled to a travel deduction, befordringsfradrag. You cannot claim the deduction if your employer pays for your travel.

The deduction is based on the distance between your home and workplace and the number of days you actually travel to work. The deduction only applies to daily travel exceeding 24 km in total. This means that the distance between your home and workplace must be more than 12 km.

Do not include holidays, sick days or days when you work from home.

If you commute between Sweden and Denmark, you may also be entitled to an additional deduction for crossing the Øresund Bridge or travelling by ferry between Helsingør and Helsingborg.

See current travel deduction rates and rules at skat.dk

Watch Skattestyrelsen's video on claiming travel deductions

 

Pension contributions

If you are taxed under the cross-border rule, you may be entitled to deductions for contributions to pension schemes. Contributions to qualifying pension schemes made through your employer are normally included automatically.

You may also be entitled to deductions for private pension contributions.

To find the relevant rates and amounts, select "Pension" under Category at skat.dk.

See current pension rates and deduction limits at skat.dk

 

Unemployment insurance fund

If you pay tax in Denmark, you can deduct membership fees paid to a Danish unemployment insurance fund, a-kasse, if you cannot deduct them on your Swedish tax return.

 

Trade union membership

If you pay tax in Denmark, you can deduct trade union membership fees on your Danish annual tax assessment, årsopgørelse.

See current deduction limits for trade union membership at skat.dk 

 

Spousal maintenance and child support

If you are separated or divorced, you may be entitled to a deduction for maintenance payments to a former spouse. You may also be entitled to a deduction for child support payments for children under the age of 18.

The payments must meet the relevant conditions for you to claim a deduction.

 

Gifts to charities

You may be entitled to a deduction for donations to approved charities if the donation is reported to Skattestyrelsen.

 

Service and home improvement deductions

You may be entitled to deductions for certain services carried out in your home under the service deduction scheme. Certain types of green home improvements may also qualify for a craftsman deduction.

 

Interest deductions

If you are taxed under the cross-border rule, you may be entitled to deductions for your share of interest expenses on mortgage loans and other loans, including Swedish student loans from CSN.

 

Current tax deduction rates

Tax rates, deduction amounts and limits may change from year to year. At skat.dk, you can select the relevant topic under "Category" and use the arrows to view rates for other income years.

See current tax rates and deduction amounts at skat.dk

 

Do you have questions about your tax deductions?

Feel free to contact Øresunddirekt's information centre for guidance on Danish tax rules and deductions.

Contact Øresunddirekt