Taxation of international executives
All individuals resident in Denmark are liable to income tax on their worldwide income. Non-resident individuals are only liable to income tax on income specified as Danish source income under Danish law. With regard to salary, a non-resident individual is normally taxed exclusively on remuneration for duties performed in Denmark received from a Danish resident employer or from a foreign employer with a permanent establishment in Denmark.
However, employees working offshore in connection with oil and gas exploration/extraction on the Danish Continental Shelf and employees who are hired out by their foreign employer to a Danish company are liable to taxation in Denmark even though the employer is neither resident in Denmark nor carries out activities through a permanent establishment in Denmark.
Credit relief in Danish taxes may be provided under a tax treaty concluded between Denmark and the employee’s home country.
The official currency of Denmark is Danish Kroner (DKK).
Herein, the host country refers to the country where the expatriate is going on assignment. The home country refers to the country where the expatriate lives when he/she is not on assignment.
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