New program for securities in SKAT's stock system

Automatic Calculation of Share Gains and Losses

SKAT (the Danish tax authority) has developed a program that can automatically calculate share gains and losses, making it easier for taxpayers to manage their share income. However, there are certain limitations you should be aware of.

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1. What Can the Program Be Used For?

Automatic Calculation of Share Income:
When SKAT receives information about the acquisition date and cost of your securities, the program can automatically calculate your share gain or loss. This applies to securities on a regulated market, which have been reported by banks and securities dealers. Older securities, from before a certain date, must still be entered manually.

Ensuring Deduction of Losses:
If you hold securities acquired through foreign or non-Danish securities dealers, you should provide the acquisition cost in SKAT’s program to be eligible for loss deductions. Without information on purchase price and date, a loss will not be automatically deductible.

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2. What Can You Enter in the Program?

You can enter details about securities that have been held in your portfolio and were not traded through a Danish securities dealer. It’s essential to stay informed about deadlines and reporting requirements, as missing or late reporting may result in the loss of deduction rights.

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3. Documentation Requirements

Even if SKAT receives information about your shares, you are still responsible for keeping documentation of purchase prices and specific changes such as mergers or capital adjustments in the companies. If you don’t have this information, you should try to obtain it from your securities dealer.

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4. How to Report

Reporting is done through SKAT's online self-service system, where you can access the securities program and enter the relevant information.

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5. SkatteInform’s Recommendation

At SkatteInform, the automatic calculation by SKAT is viewed as a positive improvement, as calculating share income can be complex. However, it requires an effort to input the information correctly for reliable automated calculations. SkatteInform recommends carefully checking SKAT’s calculations to ensure they align with your own records.

Summary

The automation from SKAT is a step towards easier share income calculations, but it is ultimately the taxpayer’s responsibility to ensure all entered information is correct and up-to-date.

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We therefore recommend that you or your auditor check annually whether the information reported by the banks, securities dealers, etc. reported is correct. Including the type of securities, heading, amount, date, etc. and also checks SKAT's inventory.

6. Contact SkatteInform

We provide qualified answers to your tax questions. If you are interested, we will be happy to assist you with the application of the new system upon further agreement.

Call us by phone 33 32 10 10

Send an email at info@skatteinform.dk

or visit us at www.SkatteInform.com

SkatteInform Chartered Accountants

Vester Voldgade 9, 2nd

1552 Copenhagen V

We do not accept responsibility for any dispositions that may be made on the basis of this newsletter without prior individual advice. Likewise, we accept no responsibility for any errors and omissions.

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