Workers from Denmark in abroad can expect lower taxes after EU pressure

The EU contended that reducing the levy deduction for Danes working part of the year abroad violated privileges of free movement.

Danes who work part of the year in close by EU countries will now be given their full levy deduction following pressure from the EU. Until now, Danes who worked part of the year overseas had their annual tax deduction reduced for the time they spent employed in Nordic nations, Germany or the Netherlands.

The European charge contended that the tax principle violated EU residents’ right to free action, and after force the tax minister, Holger K. Nielsen (SF), has now determined to end the discriminatory policy.

Infoagencies  reports that it is up to the one-by-one to seek his or her full tax deduction but that they should be adept to be reimbursed for lost profits back to the 2010 levy year. Some employees could assertion up to 7,600 kroner per year.

Thousands of employees could be affected, as over 16,000 Danes worked in Norway in 2012 alone.

Regardless of the windfall, some political parties are let down that Denmark has altered its tax directions because of EU pressure.