Deductions with limited tax liability

 

Deductions with limited tax liability

If you live in Sweden and work in Denmark, you normally have limited tax liability in Denmark. The deductions you can claim depend on your individual circumstances.

You may be entitled to:

• personal allowance if you pay tax in Denmark for the full year. If you only pay tax in Denmark for part of the year, you may still qualify through a full-year conversion
• employment deduction and job allowance
• travel deduction, befordringsfradrag, for travel between your home and your regular workplace
• deductions for membership fees to an unemployment insurance fund, a-kasse, if you cannot deduct them in Sweden
• deductions for trade union membership fees
• additional deductions for pension contributions

If the cross-border rule applies to you

If at least 75% of your total income is taxable in Denmark during an income year, you may choose to be taxed under the cross-border rule. This may entitle you to additional deductions.

See our page about deductions under the cross-border rule

Personal allowance

The personal allowance reduces the income on which you pay municipal and state tax.

If you pay tax in Denmark for the full income year, you are entitled to the full personal allowance. If you only pay tax in Denmark for part of the year, you may still qualify for a personal allowance by choosing a full-year conversion.

The amount of your allowance depends on how long you have worked in Denmark. Whether a full-year conversion is beneficial for you depends on your 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

Extra deductions for pension contributions

You may be entitled to an extra deduction for pension contributions. The deduction is calculated automatically, so you do not need to claim it yourself.

The amount depends on your pension contributions and how many years you have until you reach the state pension age. Contributions made by your employer may also qualify for the deduction.

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

See current pension deduction rates and amounts 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

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