When you as a foreign company do business in Denmark, you must, in some cases, pay tax in Denmark on any profit generated by your company. This applies if your company establishes:
- A place where the company is managed
- A branch
- An office
- A factory
- A workshop
- Building, construction, assembly or installation work, or a supervision company in company in connection with these works over a certain period of time.
The time period depends on the individual agreements between Denmark and your country. Normally the time period is between 6 to 12 months. If your business activities in Denmark exceeds this time period, your company will be regarded as established permanently in Denmark.
What to do when your company has employees?
When you establish a company in Denmark and you have employees that carry out work in Denmark, you must register as an employer. If you already have a Danish CVR/SE-number, you can register as an employer by using this form (only in Danish). You have to send the form to the Danish Business Authority by e-mail firstname.lastname@example.org.
If you do not have Danish CVR/SE number, you can register your company as an employer here.
When you have registered as an employer in Denmark, you must deduct tax and labour market contribution of 8 % (in Danish called AM-bidrag) from each wage payment. You have to declare and pay the tax and AM-contribution to SKAT on a monthly basis via SKAT´s online tool TastSelv Erhverv under the heading ‘eIndkomst’.
Where can I get more information on tax?
For legal assistance regarding tax, contact SKAT at +45 7222 1818.
Social security and workers' compensation
When establishing a business in Denmark you have to pay social security contributions for your employees.
If your company has employees that carry out work in Denmark you may be obliged to pay social security contributions under the Danish law.
Your employees will be subject to Danish social security Law, if it is not otherwise stated in EC regulation 883/2004 on the coordination of social security schemes or in conventions on social security Denmark has signed.
If your employees are subject to Danish social security rules
When your employees are subject to Danish social security rules, you as a company must pay labour market supplementary pension (in Danish: ATP) for those employees that:
Are aged 16 years and over, work at least 9 hours a week, and work as wage earners.
When you are obliged to pay ATP, you will also need to pay for financial support scheme for trainees (in Danish: AUB), financing contribution and contribution to maternity benefits.
Pay contribution to labour market fund for occupational diseases (in Danish: AES)
Pay their sickness benefits in connection with their illness
Insure your employees against workplace injuries.
If you have questions on your responsibilities regarding social security contributions (comprising ATP, AES, AUB, financing contribution and contribution to maternity benefits), you should contact the ATP by phone +45 48 20 49 14.
What to do when you have to pay social security contributions in Denmark?
In order to pay ATP and AES and other contributions for your employees, you must register as an employer. You have to submit the registration at the latest 8 days after the first payment of wages. If you do not have Danish CVR/SE-number, you can register your company and as an employer at the same time by using the application at the Business in Denmark website.
How to declare and pay ATP and AES contribution?
You have to declare the ATP contribution to SKAT via their online tool TastSelv Erhverv under “eIndkomst”.
After you have paid the ATP, you will automatically receive a bill from AES. The amount of AES contribution is calculated on the bases of your declaration to “eIndkomst”.
Insurance against occupational injury
As an employer, you are liable for the consequences of accidents and industrial diseases to which your employees are exposed. In order to insure your employees against work accidents, you must take an insurance policy at a private insurance company. If an accident occurs and your company does not have insurance, you will be obliged to pay a premium and contributions for the period that your workers should have had the insurance coverage. You will also be sanctioned with a fine, and you will be obliged to pay compensation to the injured employee.
Notification of accidents
You must report the injury to the insurance company and to the National Board of Industrial Injury. Please contact the National Board of Industrial Injury to know how to report the accident.
Where can I get more information on insurance for industrial injuries?
If you need guidance on AES contribution and insurance against workplace injuries, you can always contact The National Board of Industrial Injury by phone +45 72 20 60 00 or by email email@example.com.