Do you live in another Nordic country and intend to work as a self-employed person in Denmark?
This applies to you who live in another Nordic country and intend to work as a self-employed person in Denmark. This information only applies to taxation of this income.
Registration in Denmark
When you set up your own business in Denmark, you must first have a businessnumber (central business registration number) via virk.dk. Teh danish tax agency will automatically receive notice and establish a tax identificantion number. In order for you to get registreret for being a taxpayer, you need to contact the danish tax agency to get a preliminary tax asessemnt.
If the business does not set up a permanent establishment in Denmark (see below) you cannot get a tax identification number, but you may still be required to register for VAT, excise duties etc.
Registration, changes and deregistration can be done at virk.dk
You need to pay tax in Denmark if your self-employment has a permanent establishment.
The definition of permanent establishment, according to the double taxation agreement for the Nordic countries, can be found at "General information/permanent establishment".
Only the part of the result related to the permanent establishment is taxable in Denmark. The income is taxed pursuant to Danish rules. You must submit a tax return with information on the self-employment assessed according to the Danish rules. It must be submitted no later than 1 July in the year following the income year.
No permanent establishment
The income from self-employment is not subject to tax liability in Denmark, if it does not have a permanent establishment in Denmark.
If you are a doctor, auditor, engineer or consultant (so-called free professions), you may also be liable to tax in the country in which you perform work, when you have stayed there for more than 183 days during a 12-month period. This applies even if you do not have a permanent establishment.
For further information about taxation etc. in the other Nordic countries, click the country in question at the bottom of the page.
There are special rules that determine the country, in which you are covered by social security. You ought to contact the authority in the country, where you are going to work, for further information. In Denmark, you should contact borger.dk
Reporting - and the duty to disclose for employees
If you have employees in Denmark and a permanent establishment, you are required to register you as an employer at virk.dk. You must withhold A-tax, labour contribution rate from your employee’s salary, and pay it to The danish tax agency.
The business should register for eIndkomst. Either you can report the salary yourself or you can for instance have an accountant to do it for you. The report is for each employer. (Form 03.075 and 03.075A)
If you do not have a permanent establishment in Denmark, you must not withhold A-tax from your employees. The employees are responsible for paying tax of their earned income (B income).
If the employees are covered by social security in their native country, contributions do not have to be paid I Denmark: Contributions will be paid in the employee’s native country.
Documentation, which shows that the employees are covered by social security in another country, must be provided.
Social contributions must be paid in Denmark if the employees are covered by social security in Denmark. In Denmark, you should contact borger.dk for further information
Value added tax
Value added tax is payable on the sale of most goods and services. The general rate in Denmark is 25 per cent. You can register your business for vat on virk.dk. When you have done this, you will receive a CVR/-SE number and a certificate of registration.
Sales under 50.000 DKK
If your revenue from your self-employment is below 50.000 DKK, over a 12-month periods you can choose to register for vat. If you register for vat, you need to charge, report and pay vat even if your revenue not exceed 50.000 DKK.
Sales above 50.000 DKK
If your revenue at a 12-month period exceed 50.000 DKK, you need to register your business for vat.
If you already know that, your revenue will be over 50.000 DKK you need to register no more late than 8 days before your start your business.
Vat free sales
If you sell some specific services, you might be exempted from vat.
Normally then, you need to pay tax on labour cost instead. Vat free services can for instance be health treatment or teaching. You can both have vat-free and vat duty sales. You can for instance sell lotion with vat, combined with a vat-free health treatment.
There can be further special rules I connection with registration for vat, for instance if you buy goods from countries outside EU of you are trading with used goods. You can read more about the rules for registration for Vat on virk.dk