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When you provide services in Denmark, your company or your employees must pay Danish tax, if:

• you live abroad and run an independent business in Denmark, you must pay tax in Denmark if your company has a permanent establishment in Denmark. Whether your company must pay tax in Denmark depends on the duration of the activity and whether your country has a double taxation agreement with Denmark. Normally the time period is between 6 to 12 months. If your business activities in Denmark exceeds this time period, your company will be regarded as established permanently in Denmark. Learn more about when you have a permanent place of business on skat.dk

• If there is no double taxation agreement between Denmark and the country in which you are established, a building and construction work will constitute a permanent establishment in Denmark regardless of the length of the period. This means that it will be considered a permanent establishment from day 1.

• you hire-out your employees to carry out work in Denmark for a Danish company. This is also called international hiring-out of labour. International hiring-out of labour is the term used when your company’s employees are hired out to a Danish company in order to carry out work that forms an integral part of the Danish company. Your hired-out employees must pay Danish tax and labour market contributions on their salary/wage earned by working in Denmark.

Register your company and as an employer

You have to register your company in Denmark.

If you have employees you must withhold Danish tax and labour market contributions from the wages that you pay for the work they carry out in Denmark. In order to do that, you must also register as an employer.

Go to "Registration of Non-Danish Company – Start - 40.112" to register your company and to register as an employer.

Pay tax and labour market contribution

When you have registered as an employer in Denmark, you must deduct tax and labour market contribution of 8 % (in Danish called AM-bidrag) from each wage payment. You have to declare and pay the tax and AM-bidrag to the Danish Tax Agency on a monthly basis.

Go to self-service: "Paying A-tax and labour market contributions (AM-bidrag)".

If you hire-out your employees to carry out work in Denmark for a Danish company, your hired-out employees must pay 8 % labour market contribution (in Danish AM-bidrag) and 30% gross tax of their total wage.

Learn more on, how the tax is calculated at skat.dk

It is your client, the Danish company, who is responsible for withholding and paying this tax.

Every month you must provide your client, the Danish company, with information on your employee’s salary/wage in order to calculate your employee’s gross income and tax. If you do not provide this information, the Danish company must calculate the hiring-out of labour tax on the basis of the invoice amount.

Learn more about international hiring-out of labour at skat.dk.

Questions?

If you have questions about international hiring-out of labour, you can contact the Danish Tax Agency by email: arbejdsudleje@sktst.dk or by phone + 45 72 22 27 80.

The Danish rules are based on EU regulation. Therefore, the Danish rules are probably not far from the rules in your home country. However, the Danish regulation on working environment in the workplace is typically as strict as or stricter than rules in other EU countries.

It is your responsibility as an employer to ensure compliance with the working environment rules. You have to follow the same rules as a Danish company.

Please find more information about working environment on the website Workplace Denmark.

If your company posts workers to carry out work for a Danish company in Denmark, you will not have to pay social security contributions under the Danish law. However, your posted workers have to be insured under the legislation of the worker’s home country.

In order to document that your employees are insured in the home country, they must bring with them a document called the “A1 document”. It is your responsibility, as an employer, that your employees apply for the A1 document before the period of posting starts. Your employees have to apply for A1 in their home country.

If you are self-employed and intend to carry out work on short-term basis, you will also need to have the A1 document with you. You have to contact your home country office for posted workers in order to receive this document.

Find more information about A1 at Your Europe

You are not obliged to pay ATP contribution (labour market supplementary pension) for employees that carry out work in Denmark up to 6 months if they have a residence in a country that has not a signed convention with Denmark.

If your employees reside in a country that has signed convention with Denmark, it will be evident from the convention whether the 6-month deadline apply.

Learn more about ATP (labour market supplementary pension)

When your employees are subject to Danish social security rules, you as a company must pay labour market supplementary pension (in Danish: ATP) for those employees that:

• are aged 16 years and over,

• work at least 9 hours a week, and

• work as wage earners.

Learn more about labour market supplementary pension (ATP)

When you are obliged to pay ATP, you will also need to pay

• for financial support scheme for trainees (in Danish: AUB)

• financing contribution

• contribution to maternity benefits

• contribution to labour market fund for occupational diseases (in Danish: AES)

• their sickness benefits in connection with their illness

and insure your employees against workplace injuries.

In order to pay ATP and AES and other contributions for your employees, you must register as an employer. You have to submit the registration at the latest 8 days after the first payment of wages.

If you do not have a Danish CVR/SE-number, you can register your company and as an employer by filling in “Registration of Non-Danish Company – Start - 40.112”.

You have to declare the ATP contribution to the Danish Tax Agency via their online tool E-tax for businesses.

After you have paid the ATP, you will automatically receive a bill from AES. The amount of AES contribution is calculated on the bases of your declaration to “E-income”.

As an employer, you are liable for the consequences of accidents and industrial diseases to which your employees are exposed. In order to insure your employees against work accidents, you must take an insurance policy at a private insurance company.

If an accident occurs and your company does not have insurance, you will be obliged to pay a premium and contributions for the period that your workers should have had the insurance coverage. You will also be sanctioned with a fine, and you will be obliged to pay compensation to the injured employee.

Notification on accidents

You must report the injury to the insurance company and to Labour Market Insurance.