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 6 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 6-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.
All information contained in this publication is summarized by KPMG Acor Tax, the Danish member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Danish Individual Tax Act (personskatteloven), the Danish Tax Control Act (skattekontrolloven), the Danish Withholding Tax Act (kildeskatteloven), and the Danish Tax Assessment Act (ligningsloven).
© 2021 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.