To determine whether or not, you can deduct your transportation from your home to your company in your taxable income (this type of deduction is called “befordringsfradrag” in danish), then you need to calculate the total amount of kilometers, that you drive every day from your home to your company.
If this roundtrip distance is 24 kilometers or less, then no tax deduction is given.
You must exceed 24 kilometers roundtrip per day, in order to get a tax deduction – in other words – the distance from your home to your company, must be more than 12 kilometers one-way.
If your roundtrip distance is more than 24 kilometers, then the tax deduction given in 2018 is 1,94 DKK per kilometer for the 25th kilometer and up to 100 kilometers.
If you exceed 100 kilometers per day, then the tax deduction drops to 0,97 DKK per kilometer, for each kilometer driven above the first 100 kilometers.
These values change every year, so check the updated amounts on SKATs website every year.
One way to document the amount of driven kilometers, is to download an app to your phone, so that you can show the tax office (in case of questions), how many days you actually made the trip from your home to your company.
You can also write it down on paper, but the apps can be much more convenient, as they document the time, date, and GPS data in an instant.
This app here os quite popular in Denmark:
If you drive twice a day from your home to the company, you may be eligible for a double tax deduction, but again the documentation must be there. This double tax deduction may be relevant to those, who own a restaurant and comes in the morning to open the restaurant, and again in the evening to close.
An example on how to calculate the transportation deduction (called “befordringsfradrag” in danish):
A person drives 40 kilometers from his home to his company.
For the first 24 kilometers no tax deduction is given.
He drives 40 kilometers to the company, and then 40 kilometers again, when he drives home = it gives a total of 80 kilometers per day.
From this we remove 24 kilometers (which are not tax deductable) = 80 kilometers – 24 kilometers = 56 kilometers
He gets 1,94 DKK per kilometer (2018 rates) in tax deduction, so his total deduction per day is: 56 kilometers * 1,94 DKK = 108,64 DKK per day in tax deduction.
This amount is to be declared on the yearly tax declaration, in order to have effect on the tax.
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