Special rules on cross-border workers

The purpose of applying the rules on cross-border workers is to obtain the same advantages as a person with full tax liability in Denmark.

In specific terms, this means that these rules entitle you to certain personal and assessed deductions for expenses in connection with the Danish tax calculation.

Application of the rules on cross-border workers requires that your income from Denmark constitutes minimum 75 per cent of your total annual income calculated in accordance with Danish tax legislation.

This means that minimum 75 per cent of your total global income in the form of pay for personal work or business profits must be from Denmark.

If you are covered by the rules on cross-border workers, this will entitle you to a deduction for the following expenses, among others:  

• deduction for payments to Danish pension schemes 
• deduction for interest expenses 
• deduction for household services/home improvement deduction 
• deduction for gifts to certain approved associations.  

Please note that when you apply the rules on cross-border workers, your income need not be converted into full-year income to obtain personal allowances, which is otherwise required under the general rules.

A full-year conversion means that the monthly pay and allowances are multiplied by 12 before the tax is calculated. The calculated tax is subsequently divided by 12 to calculate the tax payable on the monthly pay.

Notification of the application of the rules on cross-border workers must be given to the Danish tax authorities by no later than 30 June of the second calendar year after the end of the income year.

You may appeal against your assessed income and deductions as well as your tax assessment to the Danish tax authorities.

If you disagree with a decision by the Danish tax authorities, you may appeal to the Danish Tax Appeals Agency (Skatteankestyrelsen) within 3 months from when the decision of the Danish Tax Agency (Skattestyrelsen) was made. An appeal fee is payable when you make the appeal.