*Please note that this article only applies to Danish tax residents.
Up to and including 2022, Saxo Bank has calculated interest on the basis of your Net Free Equity (also known as "fri kapital").
Since your Net Free Equity contains more elements than just deposits/loans, the Danish tax authority (SKAT) has announced that interest income and interest expenses from this are not considered "interest in tax sense". As a result, Saxo Bank does not report interests from your trading account to SKAT.
As of the tax year 2023, Saxo Bank will calculate and report interest to SKAT similar to other Danish Banks.
What is Net Free Equity?
The interest on your main trading account is calculated based on your Net Free Equity, which is your cash balance plus/minus any adjustments.
Net Free Equity is defined as:
- The cash balance on your main trading account
- Plus or minus any unrealised profits or losses from open CFDs, FX Forwards and Futures on your main trading account
- Plus the market value of any FX Options on your main trading account
- Minus any margin required for financing open positions on your main trading account and sub-accounts
Net Free Equity = Cash balance +/- profit/loss - margin requirements
If you have several sub-accounts in different currencies, the interests on these are based on the calculated Net Free Equity (account value) for each sub-account.
You can read more about Net Free Equity here .
What does this mean to you?
If you have been charged interest expenses by Saxo Bank , you will not be entitled to a tax deduction.
If you have received interest income from Saxo Bank, this will not appear in Saxo Bank's report to SKAT but it will still be regarded as taxable income. As such, it will no longer appear in your annual statement which is why you must report the value on your annual tax statement yourself. You can read how to report interest income below.