When we think about taxes, it can seem like a challenging task to figure out how to maximize our tax deductions and minimize our tax liabilities. Every year the deductions change and it can be a jungle to navigate.
We have gathered 6 tips on what you need to be aware of in 2023.
1. Adjustment of the personal deduction:
In 2023 the basic deduction was adjusted, which affects how much you have to pay in taxes. The new personal allowance can have an impact on your disposable income, so it is important to be aware of this change in order to budget correctly. In 2023, the personal allowance is DKK 48,800.
2. changing the top tax threshold:
In 2023, the top tax threshold was also adjusted and is now DKK 618,370 before tax. If your annual income exceeds the top tax bracket, you will be subject to a higher tax rate on that portion of your income. It is important to be aware of the changes to the top tax bracket as they may affect your overall tax burden and finances.
3. Craftsman deduction and service deduction:
From 2023, the craftsman deduction is abolished. The service deduction is still possible to use and here you can report up to DKK 6,600 annually. The service deduction can be used for services such as cleaning and childcare.
4. Free phone:
From 2023, it will no longer be possible to receive a tax-free phone as part of your employment agreement. This means that if you previously received a tax-free phone from your employer, it will now be taxed as a personal benefit. It's important to be aware of this change as it may affect your finances.
5. New taxation of electric cars:
In 2023, there will be changes in the taxation of electric cars. Previously, electric cars have been exempt from registration tax, but from April 1, 2023, a gradual taxation of electric cars based on the value of the car was introduced. This change means that it may become more expensive to purchase a new electric car. It is important to be aware of the new rules if you are considering buying an electric car in 2023.
6. Travel allowance
Transport deduction is better known as the mileage deduction and you can get a mileage deduction if you have more than 12 km to work (more than 24 km to and from work in total). The deduction is self-reported and the rates per km have increased slightly in 2023 to a basic rate of DKK 2.19 per km. You can read more about it here.
In 2023, there are several changes that can affect your taxes and your finances as a whole. By staying updated and aware of these changes, you can better plan your finances and avoid any surprises when it comes to your taxes.
You can also get help at TaxHelper.dk
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.
TaxHelper's tax guide helps you find your deductions so you get all the deductions you're entitled to
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