SKAT distinguishes between:
- Transport between home and work
- Work-related (occupational) transport, i.e. transport between workplaces and transport within a workplace. Moreover, transport to the same place of work for the first 60 days can be treated as
work-related transport.
Work-related transport is often covered directly by your employer and is then considered a tax-free allowance. Read more about this in the section Tax-free allowances.
The commuting deduction for handicapped and chronically ill persons is calculated according to special rules. There are also special rules for travelling salesmen engaging in customer-canvassing
activities for several employers at the same time, certain artists etc. Contact SKAT about this.
Transport between home and work
If there is a long way between your home and your work, you are eligible for a commuting deduction (also referred to as ?deduction for
transport between home and work'). What can be deducted is not the actual expenses but a deduction based on fixed rates, the number of kilometres driven, the number of working days per year etc.
The means of transportation you use is irrelevant, and if several persons ride in the same car, they are all entitled to a commuting deduction. The deduction is calculated on the basis of the
normal transport route by car, no matter what means of transportation you are actually using. Also, it must be based on the primary place of residence - even if you live in a holiday home for part of
the year and therefore have to travel further to get to work.
How to calculate the commuting deduction
You do not get a deduction for the first 24 kilometres (i.e. 2 x 12 kilometres) per day between home and work. The deduction is calculated as
the number of working days multiplied by a deduction per kilometre for each working day you commute. Typically, an employee will have approximately 216 working days in a year. Days off, holidays and
sick days do not count as working days.
If you have accessed E-tax in order to change your preliminary income assessment, you will be able to calculate your commuting deduction there; under the ?box' Befordring
(Transport).
The deduction rates for 2010 are:
|
First 24 km
|
No deduction
|
|
25-100 km
|
DKK 1.90 per km
|
|
More than 100 km
|
DKK 0.95 per km
|
|
More than 100 km - for certain peripheral municipalities
|
DKK 1.90 per km
|
The deduction is entered in the preliminary income assessment under Befordring (Transport ).
|
Example
A taxpayer commutes 110 km between home and work (55 km either way) and works 215 days during the year.
|
First 24 km =
|
No deduction
|
|
Deduction for 25-100 km (a total of 76 km): 76 x DKK 1.90 =
|
DKK 144.40
|
|
Deduction for 101-110 km (a total of 10 km): 10 x DKK 0.95 =
|
DKK 9.50
|
|
Total deduction per working day: DKK 144.40 DKK 9.50 =
|
DKK 153.90
|
|
Total commuting deduction: 215 days at DKK 153.90 =
|
DKK 33,088.50
|
|
Which form of work entitles you to a deduction?
For you to be entitled to a commuting deduction, your place of work must be one of gainful employment. Therefore, normally, transport to an educational institution will not entitle you to a commuting
deduction. Similarly, unemployed persons cannot deduct transport to the employment service office, and civilian conscripts are not entitled to any deduction for transport to their duty station. If
you undertake supplementary training as part of your job, you are entitled to a deduction for your transport to the educational institution. The same applies for apprentices travelling to their place
of apprenticeship.
If you have more than one place of work and the costs of transport between them are not covered under the rules on tax-free allowance, you may include such transport in the deduction for transport
between home and work. Remember that the first 24 km should only be deducted once per day.
Crossing the Great Belt and Øresund
In addition to the normal commuting deduction, you may be entitled to special relief for transport across the Great Belt and Øresund as well as relief for costs of ferry transport which is part
of the normal transport route between home and work.
The rule grants commuters across the Great Belt a special deduction (DKK 90 for motorists and DKK 15 for commuters using public transport) each time they cross the Great Belt Bridge Link.
The rule grants commuters across the Øresund Bridge a special deduction (DKK 50 for motorists and DKK 8 for commuters using public transport) each time they cross the bridge.
Increased commuting deduction
An increased commuting deduction is available to taxpayers living in peripheral municipalities. The increased deduction is calculated automatically by SKAT. See the municipalities to which this
applies at skat.dk/talogsatser (currently only available in Danish).
Additional commuting deduction
Persons with an income of max. DKK 248,700 (2011, before labour market contribution) will have an additional commuting deduction of 25% of the ordinary commuting deduction. The additional commuting
deduction is calculated and included automatically, and you therefore do not need to do anything.
The additional commuting deduction can, however, not exceed DKK 6,000. If your income exceeds DKK 248,700, the additional commuting deduction is reduced by DKK 120 per DKK 1,000 that your income
exceeds this limit.
Free transport to work
If your employer pays the commuting expenses you have to get to work (free transport), it is not worth your while to claim commuting deduction.
Free transport to work includes, for example, riding in the employer's car or bus, tax-free commuting allowance as well as a free bus or rail pass. Travelling in a company car is also regarded as
free transport, whereas travelling in a colleague's car is not regarded as free transport.
If you have access to free transport, including a company car, and you wish to claim a commuting deduction, you are taxed on the value of the free transport at the same time. The value of the free
transport is an amount corresponding to the commuting deduction. Generally speaking, the tax you will pay will be higher than if you decide not to claim a commuting deduction.
If you commute across the Great Belt Bridge Link or the Øresund Bridge and your employer is covering your Brobizz expenses, you will only be taxed on the Brobizz price if you are also using
it for other private transport.