Do you live in another Nordic country and work on board a ship that is registered in Denmark and operated in international traffic?
This applies to you who live in another Nordic country and work on board a ship that is registered in Denmark and operated in international traffic. The information concerns only the taxation of the earned income from this occupation.
International traffic means transport by ship except if the ship sails only between ports in one Nordic country.
Taxation in Denmark
You are generally subject to limited tax liability on income earned on board a ship registered in Denmark.
Ships which are registered in another country, but which are chartered on a bare-boat basis by a Danish shipping company, are treated in the same way as ships registered in Denmark.
If you are subject to limited tax liability and working on board a Danish ship registered in DIS (Danish International Ship Register), your income is exempt from tax in Denmark.
Seafarers who are subject to limited tax liability and who are working on board Danish ships engaged in international traffic and which are not covered by the DIS scheme are liable to pay final gross tax at a rate of 30%.
Instead of the gross tax, you can choose to be taxed under the ordinary limited tax liability rules. The decision must be made by 1 May in the year following the income year at the latest. You can change your decision up until 30 June in the second year after the end of the income year.
Further information about the taxation of income earned on board ships registered in Denmark and performing services on the Norwegian continental shelf can be found under the heading 'Are you resident in Denmark and working on the Norwegian continental shelf?'
Taxation in country of residence
Income earned in international traffic may also be taxable in your country of residence. If you are taxed both in Denmark and in your country of residence, the country of residence must cancel the double taxation. You must therefore always enter your foreign income on the tax return in your country of residence.
Special rules determine the country in which you are covered by social security. You should contact the authorities administering social security in your country of residence or borger.dk in Denmark for more information.