Full tax liability

Who is fully liable to pay taxes in Denmark while staying abroad?

  • People who have disposal of their home in Denmark – e.g. a room, an apartment or a house.

What does this mean?

  • You will be taxed on your global income – this means all income is taxable in Denmark whether the income comes from Denmark or from abroad

Section § 33A – reduction in tax

§33A makes it possible for certain salaries to be partly or fully exempted from taxation in Denmark.

Who can benefit from this rule?

  • PhD scholars who are employed by private companies can get a tax reduction according to §33A if they fulfil the conditions, i.e. stay abroad for more than 6 months only interrupted by vacation or similar for less than 42 days.

In certain cases you can only get half a reduction if Denmark has the right of taxation according to a double taxation agreement. For further information, contact your local tax centre.

Conditions:

  •  Liable to full tax in Denmark
  •  Staying abroad for at least 6 months
  •  Stays in Denmark on holiday or the like must not exceed 42 days (including
      days of arrival and days of departure) within any period of 6 months.
      Holidays in Denmark at the end of the period abroad cannot be included in
      in the 6 months period.

Who cannot benefit from this rule?

  • PhD scholarships – SU are not covered by section § 33A and cannot be freed from taxation on the grounds of this rule. 
  • State employees will normally have to be fully taxed in Denmark and cannot benefit from the §33 A taxation rule.

Agreements for the avoidance of double taxation

Double taxation rules are used when income is taxable in more than one country.

Denmark has entered into double taxation agreements with a number of countries, which ensures that you don’t have to pay taxes in both countries. Contact SKAT to hear whether the country you are going to have an agreement with Denmark.