Preliminary tax assessment

The preliminary tax assessment, fyribilsskattaskráseting in Faroese, is used to register changes in income or deductions. TAKS uses the assessment to make tax predictions in the current year.

When should a preliminary tax assessment be made?

In short, the assessment should be made every time you have a change in income or deduction that TAKS is not automatically notified of. For example, if you have a B-income, which is not paid via the tax withholding system, or if you have other significant changes to your income or deductions.

However, if you only receive A-income (which is taxed at source via the tax withholding system) and no other form of income, you don't need to do a preliminary tax assessment. You also don't need to do a preliminary tax assessment if you receive B-income and there have been no changes to a previously registered preliminary tax assessment. In this case, the net result for the current year is automatically carried forward as income used for B-tax predictions in the following year.

How do I register a preliminary tax assessment?

When you register a business for the first time, you will get the business registration certificate in a letter from TAKS. Enclosed in this letter is a preliminary tax assessment form, in which you should estimate the income you will have in the year. Complete the form and return it to TAKS electronically via Mínboks or by post to TAKS, Smyrilsvegur 20, Postboks 2151, 110 Tórshavn. 

Otherwise, there are two ways to register a preliminary tax assessment.

  1. The simplest way is to use our online portal, Borgaragluggin. On Borgaragluggin you can make changes to almost everything to do with the preliminary tax assessment, apart from assigning the child tax credit.
  2. You can also download the preliminary tax assessment form, available on this website, complete it, and return it to the address stated above.
What is the information used for?

The information is registered in TAKS' computer system. The system then uses this information to write B-tax bills which TAKS sends out once a month.