When you are here as a student and you also start working, you need to be aware of various issues when it comes to tax:
- Make sure that you have a valid tax card and/or make sure that your tax card has been updated on your income.
- If you have income from more than one source, it is your responsibility that your primary tax card is used by your primary source of income (your employer/provider). If you receive the state education grant (SU), your primary tax card will typically be used for your student grant and you then have to ask your employer to use your secondary tax card.
- Personal allowance: This is an amount of money that you are allowed to earn without paying tax. The allowance is automatically calculated into your tax calculations. In 2017 the personal allowance for the full year amounts to DKK 45,000 (DKK 44,000 in 2016).
- Employment allowance: You also have an employment allowance, which is calculated automatically. The allowance cannot exceed DKK 30,000 in 2017 (DKK 28,000 in 2016).
- Assessed deductions: As a foreign student you will typically only have one assessed deduction, the deduction for transport between home and work exceeding 24 km per day.The deduction is calculated as the number of working days multiplied by a deduction per kilometer for each working day. The deduction does not apply to transport between your home and your place of education.
- Students from certain countries may be eligible for an additional tax deduction. If these rules apply to you, you should submit form 04.062to SKAT including documentation that you are registered with the school/university here in Denmark. If your application is approved and your deduction is accepted in your preliminary income assessment, you must remember to enter your deduction on your tax return.
If you are receiving SU and you are working at the same time, the following guidelines apply:
- If you start receiving a state education grant (SU), SKAT is notified automatically and will subsequently generate a primary tax card/secondary tax card for you. If you are entitled to a tax exemption card, please contact SKAT on (+45) 72 22 28 28.
- If you stop receiving the state education grant, or if you work while receiving the grant, you should change your preliminary income assessment.
- If you work while receiving a state education grant you must ask your employer to use your secondary tax card. Your primary tax card is used for your education grant.
Remember: If you do not have a valid tax card you will be paying 55 % of your salary in tax and no personal nor employment allowance.