Tax allowance

[outoforbit]

Hi Forum,

I was reading a post today about joint tax allowance with married couples. I did not fully understand (partly because I use Google translator), and wanted to make sure my wife and I are not missing out on this.

Currently I'm not working, just about to start my intensive danish course. While my wife has a full-time job and a few extra shifts at another job. My question is, can she transfer my tax allowance (while I'm out of work) to her tax calculations?

Thanks!

[fundiver199]

Yes she can, starting from the year in which you came to Denmark with the intend to settle here and lived together with your wife on 31. december.

E.g. if you entered Danmark on 7. november 2009, married your wife on 9. december 2009 and applied for family reunification on 4. january 2010, then you are obliged to pay danish tax for certain kinds of income, that you had in 2009, and you should hand in a "self declaration" (selvangivelse) for the year 2009.

And if this "self declation" show, that you had no income in the year 2009, of which you need to pay danish tax, then your wife can have your unused allowed faxfree income (bundfradrag) transferred and use it to reduce her payment of taxes for the year 2009.

And the same goes of course for 2010, if you still do not have any or only very little income for 2010.

Exactly which form for income, that you need to declare in your "selvangivelse" for the year, that you moved to Denmark, is to complicated to answer hear. But typically income from a job in the country, where you lived before, will not be taxed in Denmark, as it was already taxed in the other country.

But if you have any kind of capital income, e.g. interest rates earned from bonds or bank accounts, profit from holdings of stocks or rental income from a property, you might have to pay taxes of these in Denmark, and this will then use up some of your "bundfradrag".

And the same is the case, if after your entrance in Denmark you have earned money from working from your home for an employer in another country e.g. as consultant or journalist or whatever.

[outoforbit]

Thanks Fundiver!

Well, I had imagined tax matters to be complex, as in any country.

But I think the situation is quite straight-forward in our case. We just moved to Denmark July 1st, 2010. Previously my wife was working in Germany while I was not. (I have savings but do not generate interest on them, they are just sitting in my bank account).

I do not intend to look for work this year, so my wife is the only one financially active.

Would this make it quite simple I guess to declare that I had no work in 2010?

So, by the end of the year we should do this or should we start right away at the SKAT offices?

[outoforbit]

Oh, and how much does a person have as tax allowance in Denmark each year?

Is it standard? As a newly arrived resident, how much do I have?

[fundiver199]

Yes it is pretty straight forward then. You will probably need to wait, until you have a residence permit of some kind, and then you can have a tax card (skattekort) for 2010 and at the same time tell the authorities, that your expected income is 0 DKK, and that your wife therefore would like to have her preregistration (forskudsopgørelse) changed, so that it include your unused bundfradrag.

A bundfradrag is about 40.000 DKK pr. year, and as the incometax is about 40%, the value of it is about 16.000 DKK. These amounts are not accurate, but they are close enough to give you an idea, what it is all about.

[mh1]

It is up to you whether you and your wife ask for a transfer of your tax reduction to her now, or you wait until the end of the year. If you do it now it will mean that she'll have to pay much less tax for the rest of the year = you will have more money from day to day. If you wait, she will get the overcharge sum refunded in a lump sum in 2011. The sum she can deduct extra is 42.000 kr.

[outoforbit]

Thanks Fundiver and mh, where would I be without this forum!

[antoni]

hi good day,,,
im a filipino gay soon married to a danish man. im just asking if what happen if after living in sweden, we can come back here in denmark that no problem,,, how can we sure about that? please answer me,, im confused thanks,,