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What is an advance statement and how does it work?

Aske Buemann

CEO & Co-founder

What is an advance statement and how does it work?

What is an advance payment statement?

The advancetax return shows your expected income and tax situation for the coming year. The advance tax assessment is submitted to the Danish Tax Agency and forms the basis for how much tax you will have to pay during the year. The advance statement helps to distribute your tax evenly over the year, which can prevent you from having a large tax bill at the end of the year.

How does an advance statement work?

Whenyou fill in your tax return, you must provide information about your expected income, deductions and any other financial circumstances. The Danish Tax Agency uses this information to calculate how much tax you need to pay in quarterly installments, usually collected through your employer or through various payment schemes. This way, you avoid having to pay all your taxes at once.

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5 tips to get your tax return in order:

‍1. Check your previous annual statement:

Startby reviewing your last annual statement. This will give you an overview of how your finances have developed and if there are any changes in your income and deductions.

2. Update your income:

Make sure toupdate your tax return with the latest information about your income, including salary, interest income, stock gains, etc. The more accurate the information you provide, the more accurate your tax calculation will be.

3. Consider your deductions:

Review thepossible deductions you may be entitled to, such as transportation deductions, interest expenses, union dues, etc. These deductions can help reduce your taxes.

4. Plan for any changes:

Ifyou expect changes in your finances in the coming year, such as changes in job, housing or family circumstances, take these changes into account in your tax return.

5. Pay attention to deadlines:

Make sure tosubmit your tax return before the set deadlines. Doing it well in advance allows you to make any necessary adjustments before the year begins.

Want a free check of your tax return? 

Then TaxHelper+ could be for you! TaxHelper+ works as follows:

  1. You create your TaxHelper+ membership on our platform - first month is free
  2. We check every month if your income, interest etc. is correct on SKAT (on your withholding tax statement)
  3. You can relax and enjoy the fact that your risk of a tax bill next year is much lower

Our more than 1,000 members have already received an average of DKK 4,006 more this year.

When you update your tax return regularly, you ensure that the information you provide to the Danish Tax Agency is as accurate as possible. This contributes to a more accurate tax calculation, which in turn reduces the risk of errors and unpleasant surprises at the end of the year.

Updating your tax information on a monthly basis can seem like a daunting task. With TaxHelper+, we keep track of your taxes for you throughout the year, so you can relax. You can read much more here.

See if you can get a tax refund in just 15 minutes.

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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