Foreign company taxation covers the rules for how companies and self-employed persons with activities abroad are taxed. The rules are complex and depend on whether the company has a permanent establishment abroad, how the income is earned, and whether there are double taxation agreements.
Frequently Asked Questions About Foreign Company Taxation
What is foreign company taxation?
Foreign company taxation covers the rules for how companies and self-employed persons with activities abroad are taxed. The rules are complex and depend on whether the company has a permanent establishment abroad, how the income is earned, and whether there are double taxation agreements.
When does a Danish company have to pay tax abroad?
A Danish company or self-employed person may have to pay tax abroad if there is a permanent establishment in the foreign country, or if the income is considered to come from the foreign country according to local rules. Double taxation agreements determine whether Denmark or the foreign country has the right to tax the income.
What is a permanent establishment?
A permanent establishment typically exists if the company has a fixed place of business abroad, such as an office, branch, or construction site. The definition can vary between countries and depends on the double taxation agreement.
How is double taxation avoided?
Double taxation agreements between Denmark and other countries regulate who can tax the income and how double taxation is avoided. Relief can be given either by exemption or by credit for foreign tax.
How can SkatteInform help you?
SkatteInform can help you assess whether you have a permanent establishment abroad, calculate and report foreign income correctly, and ensure relief for foreign tax and avoid double taxation.
Disclaimer
As the above is for guidance purposes only, we accept no liability for decisions that may be made based on the above without prior individual advice. We accept no liability for errors and omissions.
