Danish Contract

[MA1]

Hi,
I'm currently in the process of negotiating a contract in Denmark. I have read all the info on the Danish tax system, which is slightly concerning.

But my question is if I am a UK resident and the company I am working through (agency) is not charging a Danish based company will I have to pay any Danish taxes at all?

Thanks in advance

[Swamp Thing]

Does this mean that you will be billing a UK-based client? If so, you should have nothing to be worried about. Under no account allow yourself to be classed as resident in DK or allow yourself to be billing a DK company and/or get paid in krone. The tax authorities there will then try to invoke their regime under EU reciprocal taxation arrangements.

I used to work in DK (albeit under permie Ts&Cs), and the tax structure is frightening. A salary above £45K UK equivalent attracted 52% tax in 2003, and this was on the full slice. Also, the tax authorities have a nasty way of reaching out into offshore assets.

The Danes have a saying, which loosely goes: “If you kill your wife, chop her up into bits and dissolve her in acid, you may get off with a warning. But if you cheat on your taxes…”

[MA1]

Hi,

Thanks for your response and advice. greatly appreciated. i will make sure all those requirements are met before proceeding.

the agency i am going through have said that they will not be billing a Danish company although i have to get this confirmed. i agree the tax situation in DK is very frightening but as you mentioned as long as i am billing a UK company then that should be ok for me.

Thanks again. that has put my mind at ease

[MA1]

Hi,

In regards to the Danish contract. If all the requirements are met as in paid in UK, not a DK resident, paid in sterling. Then this means i can work over there as long as i want?

Thanks again

[threaded]

Supposedly you can only do that for 6 months. After that you will have to register and pay your back taxes.

Thing is, if you're quick on your feet, travel light, and don't fancy visiting Scandinavia ever again, you can get away with it for years. I do know of one client that has numerous UK contractors, paid in the UK, not registered in Denmark in anyway. Some have been there for more than 3 years I know of. The client will be well fscked if the tax people find out.

Oh, and they have a couple of Aussies as well, one of which had to visit hospital and used his "holiday" insurance to pay for treatment. Class!!!!

[MA1]

Danish Contract advive sought

Yes this has been my worry. i was assuming this method i could stay as long as i wanted but is it only for 6 months?. the company i am working through will be billing a Swedish company and i will be paid in sterling. the company is actually Swedish that has a site in Denmark. does this make any difference?

Thanks again guys.

[threaded]

Get in touch with Deloittes, they're handling some scam for a UK based BOS provider wherein the staff go home at the weekends. One of their clients has been here for 6 years and not paid any Danish tax.