Declare your taxable income

You must declare or check the taxable income in field 250 of your preliminary income assessment and in box 20 of your tax assessment notice when this is ready in the middle of March.

In order to obtain the deductions you should either deduct the standard deduction or the accounting deduction from your income to calculate your taxable income.

See how you do this and read more about the rules on the two types of accounting methods below.

Changing your tax assessment notice:

1. Log on to E-tax.
2. Click ‘Ret årsopgørelsen/oplysningsskemaet’ (Change your tax assessment notice/tax return).
3. Enter the taxable income or check that it is correct in box 20 (Other personal income). 
4. Decide whether you have other information to correct. 
5. Click 'Næste' (Next) and then 'Godkend' (Accept).
6. You will be shown a receipt and can then access your tax assessment notice.

Obtain the standard deduction when you rent out via a platform

In 2022, the standard deduction is DKK 10,800 (11,100 in 2023), and if you rent out a zero or low-emission car, the standard deduction is DKK 20,300 (DKK 20,900 in 2023).

Obtaining the standard deduction 

You automatically obtain the standard deduction if you rent out via platform and if the platform declares your rental income to us.

If you want to calculate your taxable income you have to deduct DKK 10,800 in 2022 (DKK 11,100 in 2023) from your total rental income and then deduct 40%. Then you have the taxable income that you enter in your preliminary income assessment and in your tax assessment notice. This means that you pay tax on 60% of the income you earn from renting out your car, boat and/or caravan exceeding your standard deduction.

If you are using the standard deduction, it applies to your total income from renting out your car, boat or caravan. This means that you cannot use the standard deduction for income from renting out your car, for example, and then use the accounting deduction for income from renting out your boat, for example.

Example: Taxable income from rental via platform using the standard deduction

Casper has rented out his car and made an annual rental income of DKK 21,000 in 2022. He chooses to use the standard deduction. The calculation of the taxable income is as follows: 

So Casper's taxable income is DKK 5,880. And he checks if it is correctly entered in box 20 of his tax assessment notice.

Obtaining the accounting deduction

If you choose to use the accounting deduction, you must deduct the expenses related to the total rental income before entering it in your preliminary income assessment or your tax assessment notice. You can only deduct the rental expenses, which means that you cannot deduct expenses related to your own use of the car, boat or caravan.

If you use the accounting deduction, it applies to your total income from renting out your car, boat or caravan. In other words, you cannot use the accounting deduction for income from renting out your car and then use the standard deduction for income from renting out your boat.

Keep accounts and a mileage log

You must keep accounts and save receipts for all your expenses during the income year as well as keep a mileage log. That will be your documentation proving that you are entitled to the deduction. You have to submit your accounts, if we ask for them.

You must use the mileage log to calculate which part of the expense the rental activity concerns.

In the mileage log, you register the mileage:

• at the beginning and the income
• before and after each rental activity
• at end of the income year

Get a mileage log template here (Danish only)

Deductions for operating and maintenance expenses

You are entitled to deduct the part of your operating and maintenance expenses for your car relating to the rental activity. You calculate the proportionate expenses which the rental activity represents of the total annual mileage.

This means that if the rental activity only makes up 10% of your total annual mileage, you are only entitled to deduct 10% of your expenses for ongoing maintenance, tires, green vehicle tax, insurance, etc.

You cannot deduct expenses for petrol as the person renting normally pays for petrol.

Deduction for expected annual loss of value

You may deduct a proportionate part of the expected annual loss of value of your car, boat or caravan. You calculate the proportionate expenses which the rental activity represents of the total mileage.

The rules of the Danish Act on Amortisation and Depreciation (Afskrivningsloven) do not apply - it is only possible to apply these rules if you run a business.

No deduction for loss

You cannot get a deduction for any loss you may have. This means that if your annual expenses exceed your annual income, you should not enter anything in your tax assessment notice.

If your income from occasional rental activity exceeds DKK 50,000 within a period of 12 months, you must register for and pay VAT.

If you know from the first time you rent out that your income will exceed DKK 50,000, you must register for and pay VAT from the beginning.

Once you are registered for VAT, you should enter your rental income exclusive of VAT minus your expenses in your tax assessment notice. Please check if your rental activity is characterised as commercial business.

Read about commercial and non-commercial businesses

You register for VAT at virk.dk (Danish only)

VAT deduction only for already registered rental cars

Generally, you are not entitled to deduct VAT on the purchase and running of personal vehicles. However, if your personal vehicle was registered and insured as a rental car, you are entitled to a VAT deduction.

Special rules apply for VAT deductions if the personal vehicle was registered and insured as a rental car and you also use the car for private purposes.