This is only the third time in 30 years that rates have been significantly adjusted in one year. This is due to gasoline price increases of up to 23% since January this year and an increase in the Consumer Price Index.
The list price of a liter of unleaded 95 gasoline was a tidy sum of DKK 13.99 on January 1, 2022. By March 9, 2022, it had risen to DKK 17.29. On March 26, it was DKK 15.89 per liter.
In 1993, it was 5.23 kroner per liter.
The Danish Tax Council believes that it is appropriate that the new set rate for the transportation deduction applies for the entire year 2022. This is so that citizens do not have to operate with several different rates in the same income year with the risk of any errors that may arise as a result.
The change also means that companies can reimburse the costs of business travel with up to DKK 3.70 per km. compared to the current rates, where business travel can be reimbursed with up to DKK 3.51 per km. This corresponds to an increase of 19 øre.
The mileage deduction
The rules for mileage deductions are unchanged, so there is still no deduction for the first 24 kilometers per day between home and work, regardless of the means of transport you use.
| Year | Rate for driving between 25-120 km | Rate for driving over 120 km |
| 2022 - previous rate | DKK 1.98 per km | 0.99 kr. per km |
| 2022 - new rate from January 1, 2022 | 2.16 kr. per km | DKK 1.08 per km |
Tax-free transportation allowance
Tax-free transport allowance can be paid to employees who drive their own car for business purposes, provided that the employer maintains the necessary control. The rules are unchanged.
| Year | For the first 20,000 km | For driving beyond 20,000 km |
| 2022 - Previous rate | 3.51 kr. per km | DKK 1.98 per km |
| 2022 - new rate effective from May 1 | DKK 3.70 per km | 2.17 kr. per km |
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