This report covers the passage in to Danish law of legislation revising the Danish special tax scheme for expatriates.
On 29 November 2018, the bill on revising the Danish special tax scheme for expatriates was passed by the Danish government.1
Although the legislative text was split into two different bills, the wording of the law on the Danish special tax scheme was not amended as compared to the wording of the bill originally presented by the government.
For prior coverage, see GMS Flash Alert 2018-135, 19 October 2018.
The new rules should make it easier for employers and their employees to apply the Danish special tax scheme. The new rules should also make it more “predictable” – considering the prior uncertainty from the tax authorities – for employers and their employees to determine if they will meet the requirements for applying the scheme.
The key changes that enter into force as of 1 January 2019, are as follows:
Employers should take stock of their expatriates into and out of Denmark, evaluate their circumstances, and determine whether policies and procedures concerning those expatriates need revising in light of the new rules. It is advisable, where employers have in-house tax professionals or external tax service providers, that they consult with them to strategize next steps.
1 For the legislation (in Danish) on amending the Danish "special tax scheme" – Lov om aendring af kildeskatteloven– click here (PDF 112KB).
The information contained in this newsletter was submitted by the KPMG International member firm in Denmark.
KPMG P/S, Dampfærgevej 28, 2100 København Ø, Tel: +45 7070 7760, CVR no. 25578198
KPMG Acor Tax P/S, Tuborg Havnevej 18, 2900 Hellerup, Tel: +45 3945 1700, CVR no. 34082200
© 2021 KPMG P/S and KPMG Acor Tax P/S, both entities being Danish limited liability partnerships and member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more details about the structure of the KPMG global organisation please visit https://home.kpmg/governance.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.