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Denmark - Special considerations for short-term assignments

Denmark - Special considerations

Taxation of international executives

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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.

Payroll considerations

Are there special payroll considerations for short-term assignments?

No.

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).

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.

© 2018 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.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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