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Tax overseas

Contractor using a UK company in Denmark advised that Danish tax applies

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Hello all

Basic situation, UK Limited Company has a long term contract on a rotation in Denmark, commenced about 4 months ago. The Director / contractor has been advised that he needs to pay Danish Tax, despite being UK tax resident and working less than 183 days a year in Denmark

2 Queries

1 Is this correct

2 Is the limited company set up ignored and they tax him based on company turnover rather than the salary he pays himself through the UK paye system

Thanks in advance

Replies (3)

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By Tax Dragon
02nd Sep 2021 16:40

Who you gonna trust on Danish tax, a Danish accountant or us dudes* in here that barely know UK rules?

*I'm allowed that one.

Thanks (1)
By Duggimon
02nd Sep 2021 16:50

I have a client in Denmark with a UK company, but it's not the same situation as your client.

I can only offer that I advised them to get a Danish accountant as well because their tax system is completely different to ours and I don't understand it and have no reason to learn.

Thanks (0)
By accountantccole
03rd Sep 2021 10:55

Talk to Danish accountant.
UK Limited carrying on a trade in France would certainly get caught by tax in France, I'd expect Denmark to have similar rules.
Individual earning a salary abroad would either need to be on a Danish payroll or seconded (but you'd need to acknowledge there is a danish activity to be able to second to it)

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