Taxation of international executives
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.
Are there special payroll considerations for short-term assignments?
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).
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.
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