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Home page // 6 tax tips for the New Year
Stocks, pensions, gifts and charity. There can be deductions to claim and money to save if you ...
December 11, 2024

6 tax tips for the New Year

Stocks, pensions, gifts and charity. There may be deductions to claim and money to save if you give your personal finances a little overhaul before the 2024 tax year ends.

1. Pay your tax arrears before the end of the year

If you pay your 2024 tax arrears before the end of the year, you won't have to pay interest on the amount. The tax authorities won't send out the annual statements until mid-March 2025, but your accountant can help you estimate any outstanding tax before the year ends.

From January 1, 2025 until the time of payment, you must pay interest on any outstanding tax. Up to and including July 1, the so-called overnight interest rate is approximately 5.3% p.a. 

If you wait to pay until after July 1 - or include the remaining tax in your 2026 withholding tax - you'll pay a fixed interest surcharge of 7.3%. Note that you can include a maximum of 23,100 kr. incl. percentage surcharge in the withholding tax for 2026.

Residual tax can occur if, for example

  • your personal income is higher than what you have registered in advance and you have to pay top tax
  • you have received a great dividend
  • your deductions are less than what you have registered in advance - for example, a lower transportation deduction as a result of more homeworking days.

2. Take advantage of pension deductions

Check if you've used all your options for tax-deductible pension contributions in 2024. Here you can read more about how to save money on taxes by putting money into a pension.

Anyone can make pension contributions, but if you pay top tax, the deduction value is highest.

3. Gifts for children and loved ones

Every year, the Danish Tax Agency sets a maximum amount for tax-free gifts to children and grandchildren, among others. In 2024, the limit is DKK 74,100.

Gifts to children-in-law with a value of DKK 25,900 or less are also tax-free.

4. Review your stock portfolio

If you as a private shareholder have received dividends or sold listed shares at a gain during the year, it may be beneficial to realize a loss on other shares before year-end. This is because losses on some shares can be offset against gains/dividends before tax is calculated. Losses that exceed the year's gains/dividends can only be carried forward to offset against later years' gains/dividends on listed shares.

For some, it will be beneficial to sell shares at a profit before the end of the year if the year's share income is less than DKK 61,000. All share income below DKK 61,000 is taxed at 27% (DKK 122,000 for spouses). Share income above this is taxed at 42%.

5. Stock savings account with potential

A share savings account is a somewhat overlooked opportunity to save money on taxes when investing in shares. It allows you to get away with a 17% share tax rate compared to the normal tax rate of 27% or 42%.

You can create one account per person and there are rules on which securities can be included. You are taxed with 17% of the return, which is calculated according to the stock principle at the end of the year.

The financial institution reports all the information to the Danish Tax Agency and the tax is calculated and paid by the financial institution via your share savings account.

In 2024, the deposit limit is DKK 135,900. If you already have a share savings account, you can deposit the difference between DKK 135,900 and the market value of the shares on December 31, 2023.

In addition, it is allowed to top up (invest) the account with the amount paid in taxes the previous year - even if it exceeds the cap for the year. The deposit cap is expected to be raised to 166,200 DKK for 2025.

If the value of the investments falls, the loss can be "saved" to offset any future gains. The account is a closed circuit, so you can only use deductions carried forward in the share savings account. If the account is not kept open, any loss deductions are lost.

6. Give to charity

You can claim a deduction for donations to various approved charitable organizations. You can deduct up to DKK 18,300 in 2024. However, a deduction requires that you provide your civil registration number to the association that receives the contribution, and the association will then report your contributions to the Danish Tax Agency.

Please note that there are special rules if you commit to making contributions for at least 10 years. 

Additional information

If you need advice or assistance, you are welcome to contact inforevision's tax department. You can read more about us here.

Flemming Saabye
Head of the tax department
T: 39 53 50 38
fsa@inforevision.dk

Jannik Petersen
Tax advisor
T: 39 53 50 47
jpe@inforevision.dk

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