Global

Details

  • Service: Tax, Global Mobility Services
  • Type: Regulatory update, Survey report
  • Date: 1/22/2014

Denmark - Special considerations for short-term assignments 

Taxation of international executives
Residency rules
Payroll considerations
Taxable income
Additional considerations


For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.


Residency rules

Are there special residency considerations for short-term assignments?


An assignee who does not have a home available in Denmark and who does not stay in Denmark for more than six consecutive months is categorized as non-resident. Staying in a hotel is not considered as having accommodation available.


Short stays abroad for leisure or holiday will not be considered as an interruption of the six-month period whereas working abroad will.


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Payroll considerations

Are there special payroll considerations for short-term assignments?


No.


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Taxable income

What income will be taxed during short-term assignments?


A non-resident is only liable to taxation in Denmark on Danish-source income/limited tax liability, which is salary for work performed in Denmark for a Danish employer (also hired out labor).


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Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Denmark?


A non-resident will not be eligible for all the same deductions which residents receive.


A previous assignment period in Denmark with Danish tax residency or taxation of salary income from Denmark may later disqualify for the 26 percent tax scheme.




© 2014 KPMG Statsautoriseret Revisionspartnerselskab, a Denmark Limited Liability Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

 

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 Denmark

Taxation of international executives