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Denmark

Are you an agency, contractor or employer operating in the Danish market? TCP offer a standard payroll service, where contractors are employed on our monthly payroll and the employer has a strictly work-based relationship. Whether the contractor is on a tax ruling scheme or not, we can make sure that they pay the right amount of tax, with the right entitlements to holidays, sickness, notice and expenses.

TCP can help you negotiate the Danish rules and regulations in a way that balances out everyone’s best interests to the maximum advantage.

Sickness – Sickness benefits are paid to the employee for the first 14 days of the employee’s absence. After 14 days, the sickness benefits are paid by the local authority, We pay for short term sickness as part of our fee.

Expenses  – Employees can receive tax free travel allowance which can be paid for up to 12 months. The work needs to be temporary and they need to have their permanent home outside from where they work (the home country), so that it isn’t possible for them to stay at their normal home, and they therefore have “double housekeeping”.

Holidays – In Denmark you don’t get paid holiday for the first year, but accrue holiday for the following year, roughly around 2 days a month.

Work Permits – You must hold a residence and work permit in order to reside and work in Denmark, if you are a citizen of a country outside the Nordic countries or the EU/EEU. Whether you can obtain a work permit depends on your qualifications. There are two types of work permits that we can apply for:

27% Rule – Denmark offers a special tax regime to highly paid inbound expatriates and researchers recruited from abroad. Through an application to the tax office, the employees may elect to be taxed at a rate of 27 % on employment income and other cash allowances, for up to 84 months. All other income, including benefits in kind other than a company car and free telephone, are taxed at the ordinary rates. Take a look at our blog post to find more information about the 27% ruling.

The Positive List – Positive list is a list of the professions currently experiencing a shortage of qualified professionals. People who have been offered a job in one of these professions, and who have completed the required education, have particularly easy access to the Danish labour market. The minimum educational level required for a position on the Positive List is a professional Bachelor’s degree.

The Pay Limit scheme gives people who have been offered a job with an annual pay above a certain limit particularly easy access to the Danish labour market. Your job must have a gross annual pay of no less than DKK 375,000 and you must have a written job contract or job offer which specifies the salary and employment conditions.

Trust TCP.

We can smooth out all the processes and procedures necessary to making everything run smoothly between everyone in the working relationship –

  • Removing restrictions on capital, debt, contractor concentration and turnover/fees
  • Entering into contracts
  • Producing payslips from timesheets
  • Processing and maintaining payroll
  • Invoicing and credit control
  • Making sure individuals are paid every week or month
  • Providing indemnity insurance cover
  • Paying agreed margins
  • Offering professional support and assistance

TCP helps everyone to enjoy smoother, more efficient working relationships, reduced costs and with fewer restrictions. We simplify the entire process for every party, from the individual to the agency to the client company, with everyone retaining their own identity which allows everyone involved to concentrate on doing what they do best.

If you are a UK citizen living in Denmark please see the following link which provides information relating to Brexit and any necessary steps you need to take to ensure you can continue to live and work in Denmark : https://um.dk/en/travel-and-residence/brexit

You should continue to check the relevant country websites for any future changes to the position.

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