International relations

SkatteInform has many years of experience advising individuals, who have a foreign connections and relationships. For example, perhaps you were hired for job abroad and do not know how to proceed with this situation. You may be wondering about keeping your tax liability to Denmark, avoiding tax evasion, and how all of this should this be handled.

Knowing about our client's background is important for enabling us to provide advice and future filing/disclosure . This way, we can provide excellent advice, and you can stay ahead of the rules.

Be aware that you may be penalized if you fail to file taxes correctly, even if you do not know the rules.

A little bit about Danish tax on foreign income

As a person, who is fully taxable to Denmark, you are taxed according to the global income principle. That means that you are, in principle, taxable on all income, regardless of where in the world the income originates, i.e. all income earned here in Denmark or abroad is taxed in Denmark.

In order to avoid possible double taxation due to the principle of global income, Denmark has introduced a number of internal rules to mitigate potential double taxation.

In addition, Denmark has concluded double taxation agreements with a number of countries in order to clarify which country is primarily entitled to the tax. This prevents double taxation of the taxpayer.

The relief in the Danish tax system  depends on a number of different factors — for example, the number of days you stay in the country of work versus Denmark, whether or not the employer has a permanent place of business or is resident in the country of work, how long the stay abroad is, etc. Social security is another important issue, that must be addressed when living abroad.

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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.