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 regards 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/jurisdiction.
The official currency of Denmark is Danish Kroner (DKK).
Herein, the host country/jurisdiction refers to the country/jurisdiction where the expatriate is going on assignment. The home country/jurisdiction refers to the country/jurisdiction where the expatriate lives when they are not on assignment.
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).
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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.