Tax Information for Residents Abroad Who Work in Denmark!

If you have the desire to work in Denmark under a Danish employer while remaining a resident of your native country, then you should have the following information in your knowledge. Even if you are a temporary worker in the country and still retaining the citizenship of your home country, you are liable to pay tax in the land of Danish.

You as a temporary worker in Denmark have to pay labor market contribution, as well as provisional tax. The amount of tax you are required to pay depends on your income and the allowances. Usually, a temporary worker must pay 8 percent of his/her income towards the LM contribution. This percent is deducted from you salary that you receive every month.

In all this matter, you do not have to work pretty much. You employer is responsible for deducting labor market contributions, as well as other taxes. You receive the an income tax return and an annual tax statement from the Danish tax authority, SKAT at the end of the year.

Preliminary Income Assessment

SKAT performs a preliminary income assessment in order to let know what the authority expect you to earn in the country, and what much you are required pay in provisional tax. SKAT also provides you with a tax card. This e-card provides the information to your employer on how much of your income they have to withhold as provisional tax.

Tax authorities in Denmark get to know most of your information which is required to determine the amount of tax you have to pay. Your employer(s) provides many of those, such as your income; banks also provide some, such as interest income and expenses; and sometimes unemployment funds and unions provide information about your

Membership payments and more.

After landing in Denmark, the first thing you must do is to register yourself with the National Registration Office nearby you. There, you will be provided with a civil registration number, which is commonly referred as the CPR number. This number is used in a number of occasions, such as in banks, or making appointments with a doctor.

If some circumstances come when you are required to change your address within Denmark, then you must report it to your National Registration Office. For more information on Danish tax system, contact an Immigration an Visa Consultant!

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