Late Tax Payment in Denmark
If you underpaid tax during the year, SKAT sends you a restskat (remaining tax) bill. Pay it quickly and the interest is manageable. Ignore it and it escalates into debt collection, with interest compounding and your tax refunds seized. Here’s how the system works and how to handle it.
Overview
Every March, SKAT calculates your tax for the previous year (årsopgørelse). If you paid too much, you get a refund. If you paid too little – because your tax card was wrong, you had side income, or your deductions changed – you owe restskat.
Restskat isn’t a penalty for doing something wrong. It’s simply a reconciliation. The penalty comes from the interest charges that accumulate, which are designed to discourage underpayment.
What is restskat?
Restskat is the difference between what you should have paid in tax and what was actually withheld from your salary. Common causes:
- Tax card (forskudsopgørelse) was incorrect – projected income too low, missing income sources
- Side income – freelance work, rental income, foreign income not covered by A-skat
- Changed circumstances – moved municipality (different kommuneskat), got married/divorced, sold property
- Equity vesting – RSU or option exercise not properly reported. See stock options guide
- Reduced deductions – claimed commuter deduction but changed jobs, lost interest deduction
Interest and penalty charges
Restskat isn’t interest-free. The rates depend on when you pay:
| Scenario | Rate (2026) | Applied When |
|---|---|---|
| Restskat up to ~22,600 DKK | 4.3% day-rate interest | Added to the restskat bill. Collected via higher monthly tax in the following year. |
| Restskat above ~22,600 DKK | 4.3% + additional charges | Must be paid in 3 instalments (August, September, October) or as a lump sum by a deadline. |
| Voluntary payment by 1 February | ~2% discount (frivillig indbetaling) | You proactively pay expected restskat before the årsopgørelse is finalised. |
| Late payment | 0.4% per month penalty + base interest | Compounds until paid. Escalates to Gældsstyrelsen. |
If your restskat is under ~22,600 DKK, SKAT simply increases your monthly tax withholding the following year to recover the amount (plus day-rate interest). You don’t receive a separate bill – it’s deducted from your salary over 12 months. You barely notice it.
Voluntary extra payment (frivillig indbetaling)
If you know you’ll owe restskat – because of side income, equity, or a wrong tax card – you can make a voluntary payment to SKAT before 1 February of the following year. Benefits:
- Reduces or eliminates interest charges
- SKAT applies a small discount (~2%)
- Pay via TastSelv →”Frivillig indbetaling af restskat”
- If you overshoot, the excess is refunded with your årsopgørelse
This is the financially smartest move if you expect to owe. Even a rough estimate reduces your interest bill significantly.
Key deadlines
| Date | What Happens |
|---|---|
| 1 February | Deadline for voluntary restskat payment (reduced interest) |
| March | Årsopgørelse published on TastSelv. Check e-Boks for notification. |
| 1 May | Deadline to correct your årsopgørelse for the previous year |
| August/Sept/Oct | Large restskat (above threshold) collected in 3 instalments |
| Following year | Small restskat collected via increased monthly tax withholding |
Payment plans
If you owe a large restskat and can’t pay it all at once, you can apply for a payment plan through SKAT or Gældsstyrelsen:
- Contact SKAT through TastSelv or by phone to discuss options
- Payment plans are typically 12-36 months depending on the amount
- Interest continues to accrue during the payment plan
- Automatic bank debit (Betalingsservice) is usually required
If you can’t pay
Ignoring a restskat bill doesn’t make it go away. The escalation path:
- SKAT sends reminders via e-Boks with payment deadlines
- If unpaid: The debt is transferred to Gældsstyrelsen (the debt collection agency)
- Gældsstyrelsen can: Garnish your wages, seize your tax refunds, register a lien against your assets, and in extreme cases, initiate forced sale of property
- Interest continues compounding throughout the process
- Credit impact: Debt registered with Gældsstyrelsen appears on the Danish RKI (credit register), affecting your ability to get loans, phone contracts, and some rental agreements
The worst thing you can do is pretend the restskat doesn’t exist. Contact SKAT early – they’re more helpful than you’d expect. A payment plan with manageable instalments is always available. The earlier you engage, the lower the total interest cost.
Gældsstyrelsen (debt collection)
Gældsstyrelsen is the Danish government’s debt collection agency. If your tax debt is transferred here:
- They will offset any future tax refunds against your debt (your overskydende skat goes to pay the debt first)
- They can garnish up to a percentage of your salary (after protecting a minimum living allowance)
- They can register the debt with RKI, which stays on your record for 5 years after payment
- Contact them directly to arrange a realistic payment plan
How to prevent restskat
- Check your forskudsopgørelse at skat.dk every January. Update your expected income, deductions, and any side income. See tax card guide.
- Report side income early. If you freelance, rent out a room, or have foreign income, add it to your forskudsopgørelse.
- Make voluntary payments before 1 February if you suspect underpayment.
- Check after life changes: New job, new municipality, marriage, divorce, property sale – all affect your tax. Update your tax card promptly.
Common mistakes
Thinking restskat only happens to freelancers
Employees get restskat too – wrong tax card, moved to a higher-tax municipality, equity vesting, or changed personal deductions. Check your årsopgørelse every March regardless.
Not checking e-Boks
SKAT sends everything digitally. If you don’t check e-Boks, you’ll miss deadlines and reminders. Set up email/SMS notifications. See the e-Boks guide.
Questions and answers
Can I appeal a restskat amount I think is wrong?
Yes – if your årsopgørelse contains errors, correct them before 1 May. If SKAT disagrees with your correction, you can appeal to Skatteankestyrelsen (Tax Appeals Agency). Get tax advice before appealing.
What if I’ve left Denmark and owe restskat?
Restskat obligations don’t disappear when you leave. SKAT/Gældsstyrelsen can pursue the debt internationally through EU cooperation agreements or bilateral tax treaties. Pay it before departing if possible. See leaving Denmark guide.
Is restskat interest tax-deductible?
No – restskat interest (procenttillæg) is not deductible. This makes it doubly expensive: you pay interest on money you’ve already been taxed on.
Sources
- SKAT – restskat rules, interest rates, and voluntary payment.
- Gældsstyrelsen – government debt collection.