Setup your Business in Denmark
Foreign companies without a permanent establishment in Denmark do not have to report and pay direct tax (deducted at source) and labour market contributions to SKAT (Danish tax authority). The rules on when foreign companies must withhold ATP can be asked from our expert advisers.
Employees must pay tax on the salary earned in Denmark, if they are or become resident or stay in Denmark for more than 183 days within a 12-month period.
Foreign companies liable to pay tax in Denmark
A foreign company is liable to pay tax in Denmark if it has a permanent establishment in the country.
Foreign companies liable to pay tax in Denmark must withhold tax on pay to the company’s employees working in Denmark. The tax, which must be reported and paid to SKAT, consists of:
ABM Global Accountants provides accounting services in Denmark through our affiliates in Copenhagen and Denmark’s main cities. Our main areas of expertise include the following:
Labour market contributions (AM-bidrag)
Direct tax (tax deducted from income at source)
Labour market supplementary pension (ATP)
Most common examples of direct taxes (tax deducted from income at source)
Labour market contributions
Property value tax based on the public property assessment
Property tax (land tax)
Indirect taxes (tax not deducted from income at source)
We provide following services in Denmark through our affiliates, which are fully authorised agent of Danish tax agency “SKAT”:
Business start-up advice
Bookkeeping and bank reconciliations
Fully outsourced accounts department
Payroll support or fully outsourced payroll managed by us
Tax returns for companies and individuals
VAT refund and payments
Double taxations reliefs
Taxation advice for individuals
Specialist corporation tax services
Property and land transactions planning
Business development and consultancy
Compliance services with local tax authorities
SKAT is organised into different core units and 30 local tax centres. Tax Centres cover the entire country but Danish citizens can in principle apply to any tax centre. There are also 22 customs operations. It was created by the merger of the National Customs and Tax Administration and the municipal tax administrations.
Call us our expert adviser to discuss further about Danish taxation system.