The longer you wait to pay your 2022 tax arrears, the higher the costs will be

Based on your 2022 tax return, you can find out if you should receive a refund or if you have underpaid tax.

Pay attention to the following timeline and interest rates:

  • From January 1 to July 3, 2023, the daily interest rate is 1.7% p.a.
  • As of July 2, 2023, you will have to pay a surcharge of 3.7%.
  • The deadline for voluntary payment of the remaining tax is July 3, 2023.

 

It is important to pay the remaining tax before the deadline. You can do this either by using a credit card until 23:59 or via online banking during your online bank's opening hours. We recommend paying the remaining tax to the Tax Agency via your tax folder.

If your residual tax including interest surcharge is DKK 22,503 or less, the residual tax will automatically be included in your withholding tax for 2024 if you do not pay before July 3, 2023.

If your tax arrears exceed DKK 22,503, it will be collected in three equal installments in August, September and October 2023. If you haven't signed up for direct debit, you will receive a notification in Digital Post when it's time to pay the first installment.

 

Reasons for residual tax

Residual tax can be due to, for example:

  • Lower interest expenses on the annual statement than on the advance statement (e.g. due to rescheduled mortgage or sale of home)
  • Lower employment deduction on the annual tax return than the advance tax return (e.g. because you stopped working or had a lower income - SU, unemployment benefits and pension do not give employment deduction)
  • Lower mileage deduction on the annual tax return than the advance tax return (e.g. because you have a shorter distance to work or have worked more at home)
  • You bought an owner-occupied home during the year and the property value tax is not on your withholding tax statement
  • You have paid less to your private pension than what is stated on your withholding statement
  • You have had gains on shares or securities
  • Holiday pay when changing jobs (holiday pay is taxed in the year it is earned)
  • You have used your main card twice during a period of the year where you had income from two places. You can see this on your payslips.
  • A deduction is missing on the annual statement, so you need to add it yourself (e.g. mileage deduction or travel expenses)

 

There can be many reasons why you have to pay back taxes. A good method is to compare your advance tax return and your annual tax return for 2022.

You can find more information at skat.dk