Nearly 25% of Danish taxpayers will owe money to the government when annual tax assessments arrive in coming months. The average payment due stands at 7,973 kroner, creating financial pressure for many households as the year-end deadline for adjustments approaches.
Tax authorities confirm the window for correcting 2025 tax information closes in December. The exact deadline depends on payment schedules. Workers receiving advance salary payments face an earlier cutoff around December 1, while those paid in arrears have until mid-December to make changes.
Cecilie Bay Frandsen, a tax expert, emphasized the urgency. "We recommend everyone double-checks their information. Everything must be included when the final December payroll runs, then the preliminary income assessment for 2025 closes," she said in a statement.
The Danish tax system operates with preliminary income assessments that taxpayers can adjust throughout the year. Missing the December deadline means facing potential underpayment charges. Interest on unpaid tax begins accumulating from January 1, even before taxpayers receive their official assessment.
Last year's interest rate reached 5.3 percent, and taxpayers cannot deduct this interest from their taxes. For someone owing the average amount, this translates to approximately 422 kroner in additional charges.
Financial advisor Camilla Schjølin Poulsen warned about hidden debt. "Even though you haven't received your 2025 annual tax statement yet, your hidden debt already accumulates from the new year. If you suspect you'll end up with additional tax, you should correct it as quickly as possible," she explained.
Taxpayers who miss the December adjustment window still have options. Increasing pension contributions before December 31 can generate extra tax deductions that might offset potential underpayments. Alternatively, taxpayers can make voluntary payments to tax authorities if they can estimate what they owe.
For the majority of Danes receiving tax refunds, experts similarly recommend checking their preliminary assessments. Getting refunded tax kroner with December's final paycheck typically provides better financial outcomes than waiting for the annual settlement.
"At our organization, we want as many people as possible to get close to 0 kroner, because that almost always makes the most financial sense," Frandsen noted about balancing tax payments and refunds.
The current system pays minimal interest of just 0.6 percent on tax overpayments, making the tax authority a poor savings vehicle. Poulsen stated directly: "Tax is generally not a good bank. If you know you'll get a lot of money back, make sure to get as much as possible paid out in December."
This annual tax adjustment period highlights the complexity of Denmark's advanced tax system, where most income tax gets collected automatically through employer withholdings. The high percentage of taxpayers facing additional payments suggests many Danes struggle with accurate income forecasting throughout the year.
The situation reflects broader challenges in tax systems that rely heavily on preliminary assessments, particularly in economies with variable income streams and multiple deduction opportunities. For international residents in Denmark, understanding these deadlines becomes especially crucial since foreign income and assets often complicate tax situations.