A person’s liability for Danish income tax is determined by residence status. A person can be a resident or a non-resident for Danish tax purposes.
An individual who has a home in Denmark where they live is considered a resident for tax purposes. An individual who stays in Denmark for at least 6 consecutive months is also considered a resident in Denmark for tax purposes.
Short stays abroad for leisure or holiday will not interrupt the 6-month period. The tax liability comes into effect from the date of first arrival. The general rule is that a person who is a resident of Denmark is taxable on the individual’s worldwide income.
A non-resident of Denmark is a person who does not fulfill the resident requirements, and they are generally assessable only on income derived directly or indirectly from sources in Denmark.
Employment income is generally treated as Danish-sourced if it is paid from a Danish source and derived from work performed in Denmark.
Employment income is considered paid from a Danish source if the employer, formal or economic, has taxable activity in Denmark in accordance with the domestic tax law.
Employment income from a non-Danish source can also be considered taxable in Denmark for the employee.
This is the case even if the employer, formal or economic has no taxable activity in Denmark but income still relates to work performed in Denmark and the employee stays in Denmark for more than 183 days within a 12-month period.