Is our accounting guy wrong?

[sme1972 10]

Hey, I am not Danish, but you can answer in Danish. i will figure it out. Here is my issue. I also live in Sweden but work in Denmark and my job wants me to sign something that doesn't sound right. i have looked, and can't find any info about it. Our Økomomichef went to a refresher course for Skattregler and now he says that since they pay for my Brobizz (or rather just a part of it), I need to sign some paper for some new Skat rules. Her is what the paper says word for word: "I forbindelse med firmaets betaling af din brobizz, samt overholdelse af forpligtigelse over for Skat, skal vi hermed bede dig bekræfte, at du ikke foretager befordringsfradrag på din danske selvangivelse." When I asked what this was about, he said there is a new rule that if your employer payes for BroBizz then I will be taxed on the BroBizz amount if I declare my befordringsfradrag on my taxes. If I don't declare the befordringsfradrag then i won't be taxed on the BroBizz amount. Can someone explain how it all works. If this is all true, I would probably be better off declaring befordringsfradrag anyways even if I get taxed on the BroBizz. I haven't worked it all out yet. And would it be the amount my company pays for BroBizz (which is without taxes of course, which makes it even lower)? Regards, Scott

[sup3rior 22]

I'll try to explain it... If your employer pays your Brobizz and doesn't deduct tax for this from your pay-check, then your employer is correct when he says that you can't get your commuters deduction... If he on the other hand pays it, and then deducts the tax from your pay-check then you are allowed to get commuters deduction... So what he told you is correct, with the exception that this is not a new rule... If you decide to get taxed, and get your commuters deduction you will be allowed to declare a deduction of 50 DKR for each time you cross the bridge for a work related cause... For example a normal day where you drive to DK in the morning, and back to SE in the evening will give you a deduction of 100 DKR. Note as well that if you are not getting compensated by your company for driving to and from work, you will also be allowed to get mileage deduction... Hope this makes sense :)

[Basse 10]

If your employer pays for the Bro bizz as a part of your paycheck, and its under the rules for "brutto lønordning"(the brobizz amount is deducted before tax is calculated) - then you can still declare your befordringsfradrag, as usual - the only thing you cant declare is the special deduction you get from using the Øresundsbroen as a part of your daily comute - its the 50 DKK for each passage. Perhaps you or the Økonomichef has heard something wrong :-) If your employer pays for the brobizz and the amount paid is not deduced before tax in your paycheck, then its correct that you cant use befordringsfradag either - but that would also mean that the amount paid by the emplyer is added to your paycheck, so taxes can be paid out of this fictive income. Dont your have a HR department, that can help you ?

[bananas 14]

"I forbindelse med firmaets betaling af din brobizz, samt overholdelse af forpligtigelse over for Skat, skal vi hermed bede dig bekræfte, at du ikke foretager befordringsfradrag på din danske selvangivelse."

If your Økonomichef has formulated it exactly like that then he is a Moron. That wording above is a complete writeoff of the whole "befordingsfradrag" and that is just wrong and not in line with the law either. Basse and Superior has given the right explanation. You don't loose your normal befordringsfradrag (for the distance to work) by getting a company paid Brobizz - you just loose the extra addendum of 50 DKK per passage of the bridge that you could otherwise add to your befordringsfradrag. The wording would make sense if it read something like this: "I forbindelse med firmaets betaling af din brobizz, samt overholdelse af forpligtigelse over for Skat, skal vi hermed bede dig bekræfte, at du ikke foretager ekstraordinært tillæg for passage af Øresundsbroen til dit befordringsfradrag på din danske selvangivelse."

[sme1972 10]

Thanks for all your help - More explanation added now

If your employer pays for the Bro bizz as a part of your paycheck, and its under the rules for "brutto lønordning"(the brobizz amount is deducted before tax is calculated) - then you can still declare your befordringsfradrag, as usual - the only thing you cant declare is the special deduction you get from using the Øresundsbroen as a part of your daily comute - its the 50 DKK for each passage. Perhaps you or the Økonomichef has heard something wrong :-) If your employer pays for the brobizz and the amount paid is not deduced before tax in your paycheck, then its correct that you cant use befordringsfradag either - but that would also mean that the amount paid by the emplyer is added to your paycheck, so taxes can be paid out of this fictive income. Dont your have a HR department, that can help you ?

Regarding HR dept: you guys know 10 times more than anyone here. We only have 3 people here living in Sweden and some people share BroBizz, so it gets complicated for them. The way it works for me today is this: My employer reduces my wage by 1500 DKK every month before any taxes. I don't even see this anywhere on my paycheck. I only see I am earning less money as my base sum. Then my company pays the entire Brobizz cost and the Brobizz is in my company's name. It seemed like a good deal for me at the time since I would otherwise be paying over 3000 DKK/month after taxes if I was to pay all by myself. Now that you have more information about my situation and since it is not 100% of the BroBizz amount that is being taken off my paycheck, what am I allowed to deduct from my taxes at the end of the year. I am assuming since the pass is not in my name, I cannot get the 100DKK/day extra deduction. Can I still get the milage deduction which is quite high at 120 km/day.

[Basse 10]

Mmmm the solution you have is called "bruttotræk ordning" in Danish - and that gives you access to the milage deduction, but NOT the bridge passage deduction (the 100 DKK/day).

[Juff 10]

Why am i lige pludselig thinking about the julekalender ;)

[bananas 14]

The way it works for me today is this: My employer reduces my wage by 1500 DKK every month before any taxes. I don't even see this anywhere on my paycheck. I only see I am earning less money as my base sum. Then my company pays the entire Brobizz cost and the Brobizz is in my company's name. It seemed like a good deal for me at the time since I would otherwise be paying over 3000 DKK/month after taxes if I was to pay all by myself.

Ok - only 1500 DKK per month in BEFORE tax money for a brobizz. That is a good deal for you - end of story.

I am assuming since the pass is not in my name, I cannot get the 100DKK/day extra deduction.

Your assumption is correct.

Can I still get the milage deduction which is quite high at 120 km/day.

Yes - correct - you can still get this one.

[Homer 10]

My employer reduces my wage by 1500 DKK every month before any taxes. I don't even see this anywhere on my paycheck. I only see I am earning less money as my base sum.

In order for this to be 100% "tax-bullet-proof" your employer MUST state on the paycheck that he is reducing you for the Brobizz.