Although most Danes fully utilize their personal deductions, there are situations where this is not the case.
A common reason for an unused personal allowance is if your income is too low to fully utilize it. Of course, if your income is less than the amount of the personal allowance, you won't be able to use the full allowance. In this case, if you can't use the full deduction, your spouse can be awarded the remaining portion of the deduction.
The personal allowance is deducted before your taxable income is calculated. This deduction is a fixed sum that you don't have to pay tax on. It is divided into 12 equal portions and results in a reduction of your taxable income. The amount changes annually.
In 2023, the personal allowance amounts to DKK 48,000 annually for people over 18 years of age. This means that the first (DKK 48,000 / 12 = 4,000)
I.e. DKK 4,000 of your salary each month will not be taxed.
In order for your spouse to receive the remainder of your personal allowance, you must not only be married, but also living together at the end of the year. If this is not the case, your spouse cannot claim the unused deduction that you cannot claim.
This also means that the transfer of the personal allowance cannot be made before the end of the year. The transfer of the unused personal allowance between spouses happens automatically at the end of the year. Therefore, it is not necessary to report this in your annual statement.
No, it is not possible to transfer your unused personal allowance to someone else. Transferring the unused deduction requires that you are married and living with your spouse.
In TaxHelper, we help you find the deductions you're entitled to. You answer a few simple questions that take just 15 minutes to complete.
Then we report the deductions, and you get an extra DKK 2,704 back in tax. At the same time, you only pay if you get a tax saving.
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