You live in Denmark and work abroad

In some cases, you can receive full-relief from the Danish tax authorities on your foreign income

In a situation where you are resident in Denmark but work abroad, in some cases you can get full-relief from the Danish tax authorities on your foreign income; despite the fact that you are still fully tax-liability to Denmark.

This depends on a number of factors including on which model can be used in your individual case.

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In Denmark, you can choose to be taxed according to:

• Equation Act § 33
• Equation Act § 33A
• Double taxation agreement concluded by Denmark with the country of employment

There is freedom of choice to use either the internal easing rules or the DBO. Of course, there are a number of requirements and conditions, that must be met in order to use one over the other. Therefore, it is always a good idea to investigate in advance, which model will be favourable for you to use. We advise that this investigation be conducted before starting work abroad.

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Tax exemption from Danish withholding tax

If you are posted abroad by a Danish employer, you or your employer can ask for an exemption from containing Danish A-tax and labour market contributions (AM-bidrag) . This way, you will avoid the risk of having to pay advance tax in two countries.

In order to receive the tax exemption, the Danish Tax Agency requires proof that you pay taxes on the foreign income earned, in the country of work. However, you cannot get a tax exemption if you are still employed by your Danish employer.

Flying personnel

If you are a pilot or cabin crew and work for an international airline, you can read more about taxation rules and social security on our website at Taxation of pilots and cabin crew.

Contact Us

Different rules apply in different situations, depending on the double taxation agreement between Denmark and the specific country, or on internal Danish tax rules. You should examine these conditions before agreeing to work abroad.

You can always contact us and receive a free and no-obligation quote. We would like to talk about how we can help you, and the solutions you need.

If you wish to be contacted by SkatteInform State-Authorised Accounting Partnership,  CVR no. 35394206, please use our contact form below. Your personal data will be processed in accordance with the General Data Protection Regulation. You will be contacted to respond to your enquiry in the best way possible.

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Disclaimer

The above information is for guidance purposes only, and we accept no responsibility for decisions made based on this information without prior individual advice. We accept no responsibility for errors or omissions.

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