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Do you live in another Nordic country and work in Denmark for a public sector employer?

This applies to you who live in another Nordic country and work in Denmark for a public employer and concerns taxation of your earned income only. The information is only about this income.  

Definition of "public sector employer"

You are deemed to have a public sector employer when you are employed by the central government, regional or municipal authorities or a public law institution, or an equivalent administrative authority in the other Nordic countries. State universities and university colleges in the Nordic countries except Finland are deemed to be public sector employers. The Finnish universities are deemed to be private employers. Companies owned by the state or a municipality etc. are not regarded as public sector employers. Nor will the state, municipality etc. be regarded as a public sector employer if the business in question is a commercial undertaking.

If you do not have a public sector employer, you will be taxed according to the rules described in "Do you live in another Nordic country and work in Denmark for a private sector employer?"

Danish public employer

If you work in Denmark for public employer, you normally pay tax in Denmark. If the work is performed in the country of residence, you are normally taxed on this part of the pay in the country of residence.

Public employer domiciled in another Nordic country

If you work in Denmark for a public employer domiciled in another Nordic country, your pay will normally be taxed in the country in which the employer is domiciled.

You are not liable to pay tax on your pay in Denmark. You are not required to submit a Danish tax return.

Taxation in Denmark

Limited tax liability

You are subject to limited tax liability in Denmark when you work in Denmark for a Danish public employer, while being resident in another country. Your earned income from the Danish employer is taxed in Denmark when the work has been done here. Rules on allowances and deductions as well as personal allowances, the cross-border worker rule and special rules for Denmark/Sweden are described in the section "Are you resident in another Nordic country and do you work in Denmark for a private employer?".

You must contact the Danish tax agency in Denmark to have a personal tax number and a tax card. You are required to submit a Danish tax return.

Full tax liability

You may be subject to full tax liability in Denmark if you have free lodgings available to you in Denmark or if you spend so many nights in Denmark that you become liable to pay tax according to the rules on residence. See the section on general information and full tax liability.

You are taxed on your earned income from the public employer in accordance with the general rules. You are required to submit a Danish tax return.

Taxation in the country of residence

You continue to be subject to full tax liability in your country of residence, which means that you are also liable to pay tax there.

You are required to submit a tax return in your country of residence. If you are taxed in both Denmark and your country of residence, the country of residence must take into account that the amount has been taxed in Denmark.

Cross-border worker rule

The cross-border worker rule between Sweden and Denmark no longer exists. However, a transition rule applies to cross-border workers who on 1 January 1997 met and still meet the conditions for being covered by the rule.

Furthermore, Danish tax legislation contains a new cross-border worker rule. This rule implies that a person who is subject to limited tax liability is taxed according to the rules applying to persons who are subject to full tax liability.

See the section "Limited tax liability".

 

Select the other country here:   Iceland | Norway | Finland | Sweden
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