Tax formalities on entering Denmark: The employee must register for a tax card.Tax formalities on leaving Denmark: The employee must deregister from the national register and notify the tax authorities.If the individual has foreign income (such as rental income, salary, shares, or a house abroad), one or more special tax forms must be filed.Foreign wealth must also be declared on a separate tax form.The tax authorities send out a pre-printed tax assessment if the tax authorities deem the income statement to be very simple. What are the compliance requirements for tax returns in Denmark?
Tax liability ends when the individual leaves Denmark, provided that accommodation is no longer available in Denmark (house/apartment is either sold/notice given to landlord or rented out on a contract that cannot be terminated by the lessor for a period of at least three years).
Employees of a foreign employer with no Permanent Establishment in Denmark must meet their preliminary tax liability by paying the taxes themselves in 10 equal instalments during the year (June and December are exempted).
The final tax is calculated when the tax return has been filed in the year following the income year.
Tax returns and compliance Tax rates Residence rules Termination of residence Economic employer approach Types of taxable compensation Tax-exempt income Expatriate concessions Salary earned from working abroad Taxation of investment income and capital gains Additional capital gains tax (CGT) issues and exceptions General deductions from income Tax reimbursement methods Calculation of estimates/prepayments/withholding Relief for foreign taxes General tax credits Sample tax calculation All income tax information is summarized by KPMG Acor Tax 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). Individual tax returns must normally be filed no later than on 1 July of the year following the tax year.
However, if the individual receives a pre-printed tax assessment from the tax authorities, any change to the pre-printed tax assessment must be filed no later than 1 May.