Belysning af den fulde skattepligtsindtræden herunder skattemæssigt hjemsted for udlændinge, der kommer til Danmark for at arbejde

Abstrakt

The overall aim with this assignment is to show when full tax liability arises in Denmark. The report focuses on foreigners (natural persons), including tax domicile, who come to Denmark to work in accordance with applicable law in the area.
The rules of tax liability are set out in the “kildeskatteloven”. The rules on this and the rules on tax domicile are set out in the double taxation agreements in which Denmark has entered. These are in most cases based on article 4 paragraph 2of the OECD Model Convention.
Applicable law in this area showed that the full tax liability to Denmark arises if a person has a home available for more than 2 months and the person works in Denmark. An exception to this is the “kildeskatteloven” § 8, 2 about tourists and students.
Internal statistics from January to October 2020 revealed that 73% of the foreigners who came to Denmark to work became fully taxable in Denmark.
If a person is tax resident in another country due to residence, there is a situation with a dual domicile. It must therefore be determined in which country a person has domicile country.
A review of the most recently published decisions regarding tax domicile for foreigners who came to Denmark for work, showed that the cases are difficult to handle. Furthermore, circumstances may change in a case, and lead to a different outcome.
Many resources are required, to follow up on all the cases where a person is double domiciled, in order to assess whether the conditions are still the same. Additionally, it is difficult due to documentation of residence pattern.
It is possible to draw the conclusion that here is a need for a simplification of the set of rules for foreigners who come to Denmark to work. A more simple and uniform taxation of the individual citizen is needed.