Fujitsu ensures compliance throughout their organisation and therefore, through co-operation with GTS Nordic, ensure compliance when handling foreign consultants and freelancers. GTS Nordic specialises in handling foreign consultants and freelancers working in Denmark.
The Danish Tax structure
Working in Denmark for a Danish end-client you, as an individual, will be taxable in Denmark from day one.
Expat Taxation Scheme / §48e
The Expat Taxation Scheme (ETS) is for persons who have not been taxable in Denmark within the last 10 years. This Tax scheme is used for hourly rates of over EUR 60/hours as the most tax efficient set-up. The overall retention rate will be around 64,5% after all relevant income taxes, social security costs and fees. The ETS is only possible via an employed solution/umbrella solution.
It is not legal to work in Denmark without registration at the Authorities. Both the individual and the end-client will receive fines if not correctly registered.
When paying income Taxes in Denmark, you are automatically covered by the Danish Social Security System. Depending on the duration of the assignment and type of registration, you will normally receive the yellow card enabling you to receive free medical treatment etc.
The overall retention rate is typically between 45 – 65%. Exact calculations/projections can be made upon request. For a typical freelancer, the retention rate is normal between 60-65%
Work and Resident Permit
For non-EU passport holders, a Danish Work Permit must be issued before start of work. The Work and Residence Permit can be issued between 72 hours and 3 weeks. The duration of the permit follows the duration of the assignment. Kindly observe that Work and Residence Permits for other EU countries can NOT be used in Denmark.
Business VISA can only be used for meetings, training and workshop and for a short period. No actual work can be performed using a business VISA.
Finding suitable accommodation in Denmark can be difficult and very time consuming. We can assist you with every aspect of accommodation from recommendation of rental agencies, proof reading of the rental Lease and signing of the same.
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to read more about the services GTS Nordic provides.