Your tax liability in Denmark depends on how long you are staying and on your employer’s ties with Denmark
A distinction is made between full and limited tax liability.
- If you are subject to full tax liability, you must pay tax in Denmark on your total income, including income from other countries.
- If you are subject to limited tax liability, you only have to pay tax in Denmark on the income earned in Denmark. E.g. working at a permanet establishment constitutes limited tax liability from day one.
- If you are working in Denmark but living abroad, you may be subject to special rules for Frontier workers. Your local tax administration will assess your Danish tax liability.
The end of liability
Your tax liability will end when you leave Denmark and take up residence abroad. Upon leaving Denmark, you have to produce documentary evidence of your tax affiliation with another country.
When you are subject to full tax liability in Denmark, you have to pay tax on income earned in other countries. However, Denmark has entered into a number of double taxation agreements with other countries in order to ensure that your taxation is modified if you have already paid tax on your income, or if another country has the right to tax.