In some cases, you can get full relief from the Danish tax 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 on your foreign income, despite the fact that you still maintain your full tax liability to Denmark.
This depends on a number of factors depending on which model can be used in the individual case.
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 conditions and conditions that must be met in order to use one over the other. It is therefore always a good idea to investigate in advance which model will be favorable for you to use. We advise that this is investigated before starting work abroad.
Tax exemption from Danish withholding tax
If you are posted by a Danish employer, you or your employer can ask for an exemption from containing Danish A-tax and am-contributions. Then you run the risk of not having to pay advance tax in two countries.
To get the tax exemption, SKAT requires proof that you pay taxes in the country of work on the foreign earned income. 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 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 internal Danish tax rules. You should examine these conditions before agreeing to work abroad.
You can always contact us and get a free and no obligation quote. We would like to talk about how we can help you and what solutions you need.
If you wish to be contacted by SkatteInform Statsautoriseret Revisionpartnerselskap, 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 in order to respond to your enquiry as best as possible.
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