Annual statement - What is included in an annual statement? Learn more here!

Get a solid understanding of what an annual statement is, how it is used in accounting, and see a concrete example of how it is calculated in practice

Understand your annual tax return: How to reconcile your tax affairs correctly as an individual and business

What is a tax assement notice (annual statement)?

A tax assessment notice is an overview of a person or company's tax affairs for a given year. The annual statement is usually issued by the Danish Tax Agency and shows whether too much or too little tax has been paid during the year. It is used by both individuals and businesses to ensure that their finances are in compliance with the tax rules. In this guide, we'll go through how the annual tax return works, how it's used in practice, and why it's important for you and your business.

How is the annual return used in practice?

The annual tax return serves as a summary of your tax affairs for the year. At the end of the year, you or your company report to the tax authorities about your income, deductions and any other relevant information. Based on this information, the Tax Agency prepares your annual tax return, which is typically available in March of the year following the income year.

The annual tax return for private individuals

As a private individual, your annual statement will show whether you have paid too much or too little tax. If you've overpaid, you'll get a refund, while if you've underpaid, you'll have to pay a balance. This is also where you can see if you've received the correct deductions, such as mileage deductions or interest on home and consumer loans.

The annual tax return for businesses

For businesses, the annual statement is an important part of bookkeeping. This is where the company can reconcile its income and expenses and ensure that the correct tax has been paid on its profits. Many businesses work with an accountant or bookkeeper to ensure that their annual accounts are correct and that all deductions and tax liabilities have been taken care of.

Corrections and objections

If you find errors in your annual tax return, you can correct the information via the Tax Agency's online system. This may be necessary if information about income, deductions or other tax-related information is missing. If there are significant discrepancies, you can also submit an objection to your annual statement.

Why is the annual statement important?

The annual tax return is crucial to ensure that both individuals and businesses comply with their tax obligations. For individuals, a correct tax return can mean avoiding unpleasant surprises such as large tax arrears, while for businesses it is part of the overall financial statements and budgeting.

In addition, the annual statement provides a clear overview of your financial situation. It shows not only how much tax you've earned and paid, but also how many deductions you've received and how much you may owe in back taxes or can get back in excess tax.

Get a solid understanding of what an annual statement is, how it is used in accounting, and see a concrete example of how it is calculated in practice