Homework can cost border commuters a huge tax advantage

Homework can cost border commuters a huge tax advantage

Commuters who live in Denmark and work in Sweden risk losing a tax advantage if they work from home during the corona crisis.

It writes the Danish-Swedish news agency News Øresund.

There are between 1000 and 2000 Øresund commuters with a Danish home address. During the corona crisis, many have been recommended or asked to work from home for periods. According to News Øresund, this means that commuters must pay tax in both countries ?? however, at different times of the year.

The pandemic will not lead to exceptions, the responsible ministers in Sweden and Denmark inform the news agency.

For those who commute the other way – from Sweden to Denmark – homework can be a plus, conversely.

This is because the tax is lower in Sweden than in Denmark.

But it will be more expensive for commuters from Denmark to Sweden, who work at home for a longer period. This is the case even though Danish commuters can receive a so-called special income tax in Sweden. Here you pay 25 percent without the possibility of deduction.

A calculation made by News Øresund shows that if you as a Danish border commuter have an income of 320,000 kroner a year, your extra costs in the form of the lost tax benefit can be 4716 kroner if you work at home in Denmark for six months.

If you work from home for nine months, the amount is DKK 15,610, while it runs up to just over DKK 27,000 if the homework lasts a year.

If you have an income of DKK 500,000 annually, calculations show that the increased tax expense for six months will be almost DKK 17,000. For nine months, the expenses can increase by almost 35,000 kroner, while for a year it can be over 56,000 kroner more expensive for the individual.

/ ritzau /

Source: The Nordic Page





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