Denmark Tax Agency Clarifies Taxation of Employer-Provided Vehicles, Commuter Deductions

The Danish Customs and Tax Administration Sept. 24 posted online City Court Decision No. SKM2025.537.BR, clarifying the taxation of employer-provided vehicles, and of commuter deductions. The taxpayer, an individual, was found liable by the Tax Agency for tax on a car leased by a company of which he was the main shareholder, and denied his commuter deduction. Upon review, the City Court found that: 1) the taxpayer was liable for individual income tax on the car’s value under the Taxation Act when his explanation that the car wasn’t available for his private use wasn’t credible; 2) the commuter deduction was ...