Rules on double taxation

When you are fully liable to pay tax to Denmark, you are obliged to declare all your income and tax deductions – both from Denmark and abroad – to the Danish tax authorities.

In Denmark, a so-called global income principle applies, according to which income is taxed even if it comes from abroad.

The principle may result in the same income being taxed both in Denmark and abroad.

You declare your foreign income and deductions at www.skat.dk/english. Here you log on via the self-service system E-tax (TastSelv) by clicking ‘Log on for individuals’ and using your NemID/MitID. Select ‘Udenlandsk indkomst’ (Foreign income) under the item ‘Ret årsopgørelse/oplysningsskemaet’ (Correct your tax assessment notice/tax return). Here you declare your foreign income.

You can also fill in and submit form 04.011 EN (Tax return for foreign business income) and form 04.012 EN (Tax return for foreign income), which you find at www.skat.dk/forms. 

• SKAT 
• E-tax – logon window (in Danish)
• Forms at the Danish tax authority
• Tax return for foreign business income
• Tax return for foreign income

To prevent that you as a taxpayer pay tax twice on the same income, Denmark has entered into double taxation agreements with a number of countries.   

To determine how a given income is to be taxed, it is necessary to read the specific double taxation agreement between Denmark and the country in question.

Read more about the individual double taxation agreements on the website of the Danish Ministry of Taxation. Please note that not all the agreements are available in English. 

A double taxation agreement is divided into different types of income which are taxed in different ways. The areas covered by the double taxation agreement include taxation of business profits, permanent establishment, income from real property, earned income, pension, including returns on foreign pension schemes, interest, dividends, capital gains, etc.   

The above examples of income types are not exhaustive, and it is therefore necessary to review the specific double taxation agreement to determine which of the two countries has the right to tax a given income or asset. 

• Read more about the individual double taxation agreements on the website of the Danish Ministry of Taxation (in Danish)

You may appeal against your assessed income and tax 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 three months from when the decision of the Danish Tax Agency (Skattestyrelsen) was made.

An appeal fee is payable when you make an appeal. 

• Read more about the appeal process at the Tax Appeals Agency