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PRIVACY

Tax chief: ‘Protect personal data’

The director-general of the National Tax Agency (Skatteverket) Mats Sjöstrand has called for the protection of personal data and the closure of websites that use the authority's registers unethically.

Tax chief: 'Protect personal data'

Sjöstrand called on the government to intervene and act to protect the integrity of individuals and their personal data.

“Let the individual decide if his or her personal data should be released,” Sjöstrand wrote in an article in Dagens Nyheter on Sunday.

Sjöstrand pointed out that information requested from the tax authorities over the tax and financial affairs of private individuals can, with the help of modern technology, be made easily and widely available.

The Swedish principle of of public access to official records is being misused for financial gain, Sjöstrand writes.

“Technological advances mean that this information can be spread in a way that threatens personal integrity.”

Sjöstrand wrote that the agency receives a storm of complaints annually from private individuals angry that their income and financial information is widely available at the click of a mouse over the internet.

He called on the government to act to give private individuals a say in how their information is used.

He also called for the scrutiny of firms that seek and distribute information to ensure that they follow the ethical rules that apply to credit-rating agencies and not simply to meet public curiosity over the affairs of their neighbour.

Sjöstrand concluded that the tax agency relies on its reputation and the trust of the public to conduct its work efficiently.

“Without the trust of people and companies our task becomes harder and there is a risk of the creation of an inefficient public agency that works poorly.”

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TAXES

Beskæftigelsesfradraget: What is Denmark’s employment allowance?

Denmark's government may soon announce changes to its tax reform plans, which will give all wage earners a bigger employment allowance. What is this and how will it affect foreigners' earnings?

Beskæftigelsesfradraget: What is Denmark's employment allowance?

What is the employment allowance? 

The Beskæftigelsesfradraget (from beskæftigelse, meaning employment, and fradrag, meaning rebate) was brought in by the centre-right Liberal Party back in 2004, the idea being that it would incentivise people to get off welfare and into a job.

Everyone whose employer pays Denmark’s 8 percent AM-bidrag, or arbejdsmarkedsbidrag, automatically receives beskæftigelsesfradraget. Unlike with some of Denmark’s tax rebates, there is no need to apply. The Danish Tax Agency simply exempts the first portion of your earnings from income taxes. 

In 2022, beskæftigelsesfradraget was set at 10.65 percent of income with a maximum rebate of 44,800 kroner. 

How did the government agree to change the employment allowance in its coalition deal? 

In Responsibility for Denmark, the coalition agreement between the Social Democrats, the Liberals and the Moderate Party, the new government said it would set aside 5 billion kroner for tax reforms.

Of this, 4 billion kroner was earmarked for increasing the employment allowance, with a further 0.3 billion going towards increasing an additional employment allowance for single parents.

According to the public broadcaster DR, the expectation was that this would increase the standard employment  allowance to 12.75 percent up to a maximum rebate of 53,600 kroner. 

How might this be further increased, according to Børsen? 

According to a report in the Børsen newspaper, the government now plans to set aside a further 1.75 billion kroner for tax reforms, of which nearly half — about 800 million kroner — will go towards a further increase to the employment allowance. 

The Danish Chamber of Commerce earlier this month released an analysis in which it argued that by raising removing all limits on the rebate for single parents and raising the maximum rebate for everone else by 20,300 kroner, the government could increase the labour supply by 4,850 people, more than double the 1,500 envisaged in the government agreement. 

According to the Børsen, the government estimates that its new extended allowance will increase the labour supply by 5,150 people.  

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