Thinking of making a move and ceasing your tax residency in Denmark? Navigating through the procedures might seem a bit daunting, but with the right steps and information, you can smoothly transition out of your Danish tax residency. Here's your comprehensive guide to ensure you're on the right path!
Notify the Danish Tax Agency (SKAT)
The first step in ceasing your tax residency is to formally notify the Danish Tax Agency (SKAT) of your intent to leave Denmark. This can be done by submitting relevant forms online or by mail. Ensure you provide accurate details of your departure date and new residence.
Deregister from the National Register (Folkeregister)
You must deregister from the National Register (Folkeregister) within five days of leaving Denmark. This can be done online through the Borger.dk portal or at your local citizen service center. Make sure to provide your new address abroad.
Settle Outstanding Tax Liabilities
Ensure all your tax liabilities are settled before you leave. This includes filing any pending tax returns and paying any due taxes. You might need to file a special tax return for the year of your departure.
Close Danish Bank Accounts
If you no longer need your Danish bank accounts, consider closing them. Notify your bank of your departure and settle any outstanding dues. This will help prevent any future tax complications.
Review Double Taxation Agreements
Check if your new country of residence has a double taxation agreement with Denmark. This will help you understand your tax obligations and avoid being taxed twice on the same income.
Consult the Exit Tax Rules
Familiarize yourself with Denmark's exit tax rules, which may apply if you hold significant assets. You might be liable for taxes on unrealized capital gains at the time of your departure.
Legal References
- Danish Tax Agency (SKAT) guidelines
- National Register (Folkeregister) regulations
- Double Taxation Agreements
- Danish exit tax rules
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