But this year an exception applies to certain commuters in Frederikshavn, Hjørring, Brønderslev, Jammerbugt, Thisted, Morsø, Vesthimmerland and Læsø Municipality.
They get an extra high transport deduction.
But they have to go to the keys themselves if they want to enjoy it right away.
The special deduction
Back in February, the Danish Parliament voted yes to an extraordinary deduction for 196,000 commuters in the country’s 25 outer municipalities and 10 small islands.
Partly because the commuters in question can also use the high deduction rate for daily driving in excess of 120 km. In 2024, this will mean DKK 2.23. per km instead of the DKK 1.12. per km, which applies to long-distance commuters in other municipalities.
Partly because the commuters’ total transport allowance – i.e. for all transport in excess of 24 km per day – is increased by 10.75 per cent.
But according to the audit firm BDO, the Tax Agency has not been able to change their systems quickly enough for the 10.75 percent supplement to be included in the advance statement for 2025.
It only comes into play if citizens in the outer areas go in and adjust their transport allowance – possibly only with a symbolic amount. In that case, the supplement is automatically added on top.
– There is no one who ultimately misses out on the extra deduction, but I think that the Tax Agency could have informed that it is not automatically included in the advance statement, says Henning Boye Hansen, chief consultant and tax expert at BDO.
Henning Boye Hansen, chief consultant at the audit firm BDO. Archive photo: Thomas Lekfeldt/Ritzau Scanpix
The cash dividend
Those who do not adjust their transport allowance will therefore not miss out on the supplement. It is automatically included in the annual statement for 2025 and will therefore simply trigger a larger excess tax – or less residual tax – than there would otherwise have been.
For a commuter who lives in Hirtshals and drives to work in Aalborg and back home 210 days a year, the increased driving allowance triggers an extra DKK 5,840. However, the tax value of the deduction is only 26 percent, so the real dividend is DKK 1,518.
This corresponds to DKK 127 per month.
– Due to the modest financial importance, there are hardly many people who bother to correct the advance statement just to get it included. Most people will probably instead be happy with the idea of a slightly larger excess tax in 2026, says Henning Boye Hansen.
According to the Danish Tax Agency, there are around 1.1 million commuters in Denmark each year who receive a deduction for transport between their workplace and home.
And the deduction will be the same next year as this year, the Tax Council recently determined.
The driving deduction thus remains at DKK 2.23 per kilometer for driving between 25 and 120 kilometers. For driving over 120 kilometres, it remains at DKK 1.12 per kilometer – except for commuters living in outer municipalities.
The increased deduction applies to the years 2024–2027.
These are covered by the increased driving allowance
North Jutland region: Frederikshavn, Hjørring, Brønderslev, Jammerbugt, Thisted, Morsø and Vesthimmerland.
Central Jutland region: Struer, Skive and Norddjurs.
Region Southern Denmark: Tønder, Aabenraa, Sønderborg, Faaborg-Midtfyn and Svendborg.
Region Zealand: Lolland, Guldborgsund, Vordingborg, Slagelse and Odsherred.
Island municipalities: Bornholm, Langeland, Samsø, Ærø and Læsø.
Residents of Baagø, Egholm, Endelave, Hjarnø, Mandø, Nekselø, Orø, Sejerø, Tunø and Aarø.
2024-11-25 05:00:00
#Thousands #people #North #Jutland #extra #deduction #register
How can commuters ensure they receive the benefits from the new transport deduction in Denmark, and what steps should they take to adjust their allowances?
**Interview with Henning Boye Hansen, Chief Consultant at BDO**
**Interviewer:** Thank you for joining us today, Henning. We see that there’s a significant change regarding transport allowances for certain commuters in Denmark. Can you explain what prompted this change?
**Henning Boye Hansen:** Thank you for having me. Yes, recently the Danish Parliament approved an extraordinary transport deduction for 196,000 commuters living in outer municipalities and small islands. This decision aims to provide some financial relief for those who face longer commutes, especially as the cost of living continues to rise.
**Interviewer:** That’s interesting! So, how exactly does this new deduction work for these commuters?
**Henning Boye Hansen:** Essentially, commuters who travel over 120 kilometers daily will now receive an increased deduction rate of DKK 2.23 per kilometer, compared to DKK 1.12 for others. Additionally, the overall transport allowance has been boosted by 10.75 percent for all journeys exceeding 24 kilometers each day.
**Interviewer:** It sounds beneficial, but there seems to be a catch regarding how these commuters access their higher allowances?
**Henning Boye Hansen:** Exactly. Unfortunately, the Tax Agency could not get their systems updated in time to automatically include this increase in the advance statement for 2025. Commuters will need to actively adjust their transport allowance for it to take effect right away. If they do so, the increase will be applied.
**Interviewer:** That’s quite the hurdle! What would you advise commuters to do?
**Henning Boye Hansen:** I’m advising commuters to take the small step of adjusting their transport allowance, even if it seems trivial. This small action will ensure they can benefit from the extra deduction immediately rather than waiting for a larger tax adjustment later.
**Interviewer:** Could you share an example of how this translates financially for commuters?
**Henning Boye Hansen:** Certainly! For instance, a commuter living in Hirtshals who drives to Aalborg and back 210 days a year can expect an additional driving allowance of DKK 5,840. However, when factoring in the tax value of the deduction at 26 percent, the real benefit they receive would be around DKK 1,518, which is about DKK 127 a month.
**Interviewer:** That’s quite insightful! Given the modest financial impact, how do you believe commuters will react?
**Henning Boye Hansen:** Many might not bother to make changes to their advance statements due to the relatively minor financial benefits. Most may prefer to accept a slightly larger excess tax in 2026 rather than adjust now. However, for those keen on optimizing their deductions, taking action is crucial.
**Interviewer:** Thank you, Henning, for shedding light on this important topic. It’s clear that while the changes can benefit commuters, they will need to be proactive to take full advantage.
**Henning Boye Hansen:** My pleasure! It’s always good to keep commuters informed about their options.
