How do I get PR in Denmark

Tax liability in Denmark: when does it apply for German companies and their employees?

The authorities check, among other things, that the taxes are being paid correctly to Denmark.

In some cases, German companies and citizens in Denmark become taxable in terms of income from work in Denmark.

Tax liability of German companies in Denmark

German companies are liable to tax in Denmark when they set up a permanent establishment in Denmark.

In this case, the salary of the German employees must be taxed in Denmark, as the employees are taxable in Denmark.

In principle, if the German company does not have a permanent establishment in Denmark and at the same time retains the "employer role" towards German employees, no tax has to be paid in Denmark. This applies to the company and the employee.

Tax liability of German citizens in Denmark

However, German citizens who work for a German company in Denmark may be liable to tax in Denmark even if the German company does not have a permanent establishment in Denmark.

For example, if the German company carries out work for a Danish company, the Danish company must pay the Danish wage tax for the German employee. This applies if the Danish company is the actual employer or if the German employee has been "loaned" to the Danish company.

The German citizens then become taxable in Denmark "outside" their employment in the German company. The actual circumstances are decisive.