10 Things You Need to Know about Tax in Denmark
- 1. When do You Become Taxable in Denmark
- 2. How to Register in the Danish Tax System
- 3. What is Included in Your Taxable Income
- 4. How Much Tax Do You Need to Pay
- 5. Social Security Network for Work within the EU
- 6. Does Your Company Need Foreign Workers
- 7. Company or Self-Employed
- 8. How to Pay Salary to Yourself as a Major Shareholder
- 9. Securities and Other Activities Abroad
- 10. How to Avoid Double Taxation
- Starting a Business
- Does Your Company Need Foreign Workers?
- COVID 19 - THE DANISH TAX AUTHORITY OFFERS AID PACKAGES FOR YOU AND YOUR BUSINESS
- Larger deductions for companies that need to invest in fixed assets or small assets
1. When do You Become Taxable in Denmark
You can be taxable in Denmark in two ways
You can be taxable in Denmark in two ways. You are either fully taxable or partially taxable. Fully taxable means that you must file your tax return and pay tax on the entirety of your global income, regardless of the type of income. Conversely, those who are partially taxable must only pay tax from their sources of income within Denmark. For example, this could be income from working for a temporary period, board fees, dividends from shares or rent income from a rental property in Denmark.
Full Tax Liability
You will be fully liable to pay tax on your global income to Denmark, if you have a residence at your disposal in Denmark and are staying permanently in Denmark (aside from vacation and holidays). You must be very careful about doing business in Denmark, if you have access to a home.
Longer stay in Denmark will make you fully taxable
If you stay in Denmark for a longer period, you will automatically become fully taxable. If you find yourself in this situation or if you will be in this situation in the future, we recommend seeking professional advice.
*SkatteInform does not take any responsibility for any actions taken based on the information provided in this article, before receiving individual tax advice.