What is anadvance statement?
An advance statement is an overview you send to the Danish Tax Agency, where you state your expected income and deductions for the coming tax year. This allows SKAT to estimate how much tax you will have to pay during the year, which affects your ongoing tax payments. At the end of the year, this information is used to prepare your annual statement and calculate whether you should get a tax refund or pay more.
1. Enter your income information:
Startby stating your expected income for the coming year. This includes salary, pension, any income from investments and any other sources of income.
2. Subtract your deductions:
Remember to include all deductible expenses, such as mortgage interest, union dues, transportation and healthcare expenses. These deductions can help you reduce your taxes.
3. Add other relevant information:
Be sure to include any additional information that may affect your tax liability, such as changes in your family situation, changes in employment status or any other tax matters.
4. Update your tax return during the year:
It's important to remember that your withholding statement is not static. If your financial situation changes during the year, you need to update your withholding tax statement in accordance with the changes to avoid getting a tax break in March.
5. Meet deadlines for submitting your tax return:
The deadline for submitting your tax return varies from year to year. Stay up to date.
Completing your tax return correctly is crucial to avoid unnecessary tax costs and to maximize your chances of getting a tax refund.
Remember to use all relevant information, deductions and tax benefits to your advantage. You may also want to consult a tax expert or accountant to ensure your tax return is accurate and compliant with current tax rules. Or you can use TaxHelper+.
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.
Every year in Denmark, more than 700,000 citizens face an unexpected financial burden of over DKK 4.8 billion in unexpected tax bills. It's therefore important to keep track of your tax deductions and advance statement.
When it comes to taxes, it's better to be ahead of the game than to be surprised by an unexpected bill. Many Danes experience tax penalties because they haven't corrected their tax return in time. We want to help with that.