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.
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