Kørselsfradrag

Kørselsfradrag, often referred to as "tax deduction for commuting" in English, is a deduction available in Denmark that allows individuals to reduce their taxable income based on the distance they travel between their home and their workplace. This deduction is intended to compensate for the expenses incurred by employees who must commute to their place of employment.

To be eligible for kørselsfradrag, there are specific requirements. Generally, the distance between home and work must be at least 24 kilometers one way. The deduction is calculated based on the total number of kilometers traveled per working day, multiplied by a predetermined rate per kilometer. The rate is set by the Danish tax authorities and can be subject to change annually.

The maximum deduction is capped, meaning that even if an individual commutes a very long distance, they will only receive a deduction up to a certain limit. Furthermore, the deduction applies only to the most direct route between home and work. If an individual chooses to take a longer route for personal reasons, the extra distance will not be deductible.

Kørselsfradrag is claimed when filing one's annual tax return. Employees typically need to provide information about their home address, workplace address, and the number of days they commuted during the tax year. It is important to keep accurate records of travel, as the tax authorities may request documentation to verify the claims. The deduction is applied to the gross income, thereby reducing the overall tax liability.