Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/10/2012

Denmark - Increased taxation of employer-provided “free housing” (January 2013) 

September 10:   As initially announced by the Danish tax authorities in December 2011, certain favorable tax rules relating to employer-provided “free housing” will be repealed, effective 1 January 2013. 

Beginning 2013, the taxation of a “free” residence must be based on the home's market value, as opposed to rules that establish the taxable base at a maximum amount of 98,000 DKK (approximately U.S. $17,000) per year, regardless of the actual rental cost.


Danish companies that have offered employer-provided residences for employees as part of their employment package when recruiting foreign workers may want to reconsider their policies due to this increased taxation.


Read a September 2012 report (Danish) prepared by the KPMG member firm in Denmark: Ny skatteregel skader virksomheders tiltrækningsevner


Read a August 2012 report (Danish) prepared by the KPMG member firm in Denmark: Skatteministeriet afskaffer de skematiske satser til beskatning af fri helårsbolig





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