Danish taxation

Moving to or performing work in Denmark will result in a Danish tax liability. With our dedicated and skilled tax team we cover all items from preliminary considerations about level and scope of taxation as well as timing over planning and calculations of tax to the actual enrolling into the system, filing, tax returns and final settlement of the taxes due.

We handle all types of income and taxation in Denmark related to persons to ensure full compliance locally and will secure correct handling of international tax implications since income may also be taxed or derived from other countries.

Denmark applies the global income principle where any income may be taxable and will need to be reported in Denmark for a tax resident, however, this may not result in any tax being due. We will be able to assist with determining the tax position already before arrival to Denmark and assist with the right planning and overview. Upon departure from Denmark the overall position must be taken into account to know the tax consequences and whether or not Danish tax residency may be broken.

For foreign service providers it is crucial to be aware that Denmark strictly applies the “economic employer” concept, that may result in Danish income tax and reporting obligations from day one even for very short work stays. I.e. the individual as well as the non-Danish legal employer may have obligations that need to be determined.

Denmark has a widespread net of double taxation agreements (DTAs) as well as internal legislation to avoid actual double taxation. Our experienced tax team has full knowledge of the impact from this and will know how to apply the right solution for cross border activities.

– Evaluate tax impact from the relocation of an employee
– Pre-arrival, arrival and departure briefings
– Tax calculations – overview of employer and employee cost and impact
– Tax compliance, registration, returns, final assessment in home and host country
– Project management and coordination to ensure compliance and coherent approach

Relocation

Training & Consulting

Mentor Mentee

Relocare

Danish taxation for expats and families from Relocares tax department

Relocation

Training & Consulting

Mentor Mentee

Relocare