Tax Identification Number
From 1 January 2024, a TIN (Tax Identification Number) must be included when reporting salaries for employees living abroad .
Tax and Christmas presents - Do you know the rules
Christmas is fast approaching, and that means gifts and Christmas parties. Every year around this time, however, we find that a lot of companies are unsure about VAT and tax rules in connection with the joys of Christmas.
VAT on property rentals
As a general rule, property rentals are exempt from VAT. However, in many cases it can be an advantage to let a property with VAT, which requires separate registration with the Danish Tax Agency.
In 2021, companies with more than 250 employees were required to set up a whistleblower scheme. Now, private companies with 50 to 249 employees are required to do the same and the scheme must be set up by 17 December 2023.
Is your salary ready for the end of year?
Every employer who has paid wages in a calendar month is obligated to report these to the Danish Customs and Tax Administration. As an employer, you must also secure basic vouchers, control trail and transaction trail, cf. the Danish Bookkeeping Act. This article will give you an overview and a useful guideline in relation to the end of the year.
Time to replace your ERP system? Here are 5 good tips
Get 5 concrete pieces of advice that will help you get through the replacement of your current ERP system in one piece, while giving your employees and suppliers the best working conditions at the same time.
When and how should you issue a warning?
As an employer, you may find that from time to time an employee often shows up late for work, has cooperation difficulties with other colleagues, In this blog post, I will generally review the situations in which a warning can be given and how the process should be.
Corporate tax status and remote working
In Denmark, a recent ruling from the Danish Tax Council regarding permanent establishment have shown that foreign companies may be corporate tax liable, if they have any commercial advantage of allowing employees to be located and working from home in Denmark.
Mandatory reporting of transfer pricing documents
A number of companies in Denmark are subjected to the law concerning the annual mandatory reporting of transfer pricing documents including limited companies and other registered company entities liable for corporate tax.
The new Employment Certificate Law comes into force on 1 July 2023
A bill regarding employment certificates and certain working conditions was passed on 1 May 2023. The new law will come into force on 1 July 2023, replacing existing legislation in this area.
Country-by-Country Reporting (CbC Reporting)
Country-by-Country Reporting is an international corporate reporting standard that requires multinational companies to provide information on their taxable income, taxes paid and other financial activities in each country where they operate.
What is holiday supplement and why do we get it?
Holiday supplements are a compensation for your employees and are equal to 1% of their salary for the annual holiday qualifying year. In this article, we have gathered information on holiday supplements that is important for both employees and employers in Denmark.
Salary and staff costs: How much does an employee actually cost?
In this article we sum up the most common costs that must be included when you calculate your company's total staff costs.
New rules on employment contracts are on the way
The Ministry of Employment has sent a draft of a new bill on employment contracts and certain working conditions for consultation. The law is expected to take effect on 1 July 2023 and will replace the current Employment Contract Act.
New rules for care leave have come into force
In connection with the implementation of parts of the Parental Leave Directive, on 9 June 2022 the Danish Parliament adopted new rules for care days, flexible working hours and extended leave.
Awarding employee shares and reporting
Many companies offer their employees the opportunity to invest in employee shares as a means to motivate and retain loyalty and commitment. However, some special tax rules apply, which I will address in this post.
6 pitfalls in payment of wages
If you know these 6 pitfalls, you are well equipped to avoid the typical mistakes that can occur in connection with payroll processes.
Payment of unclaimed holiday pay
Remember that the timely payment of unclaimed holiday pay for the 2019 and 2020/2021 holiday years is 15 November 2022.
New holiday year - what you need to know
The new holiday year starts on 1 September 2022. In this article we will answer all the frequently asked questions.
New Danish Bookkeeping Act
In this article, we consider what the new Danish Bookkeeping Act means for Danish companies and what work processes are required to satisfy the requirements of the new legislation (assuming it is adopted in its current draft form).
Holiday planning: How to prepare for your employees' annual leave
Holiday planning is part of employers’ tasks and partly consists of distributing holidays between employees without affecting the company's operations and partly of ensuring that the applicable rules regarding holidays and notices are complied with. In this article, you can learn more about the rules regarding holiday planning.
New parental leave legislation in the works
The Danish Parliament is currently in the process of adopting new legislation on parental leave, which includes the introduction of earmarked leave and equal sharing of the right to parental pay.
Intrastat - changes from January 2022
New EU legislation will entail some changes to Intrastat from January 2022. In this article, you can read about the new requirements in Intrastat starting from 2022.
What is reimbursement? Know your rights as an employer
Reimbursement is a municipal reimbursement for expenses for employees on long-term sick leave or employees on parental leave. It is possible to apply for reimbursement from employees’ first day of illness if absence due to illness is caused by COVID-19. Read more about rules and rights.
Good customer relationships set you apart from your competitors
Good relationships with customers are not just nice to have. They are a must-have. In a world where possibilities seem endless and technological developments have made the distance between people almost non-existent, the need for networks is growing.
EU schemes for e-commerce for private individuals
Do you own one or more companies dealing with e-commerce across the EU? Then you must be aware that, as a result of the new VAT rules, you will be obliged to sell your goods with foreign VAT in the future. Businesses selling to private individuals in the EU can take advantage of tools that can make administration of the new scheme easier.
Eight tips for minimising risks when something unexpected happens
Control is about a lot more than tracking sales and comparing them to the current budget and previous years. There are many events and situations that can affect your business. If you have a plan for dealing with unexpected events in advance, you can reduce risks and increase security. Here are some tips that will get you better prepared and make you less vulnerable.
Four steps to optimise the payroll department
Cumbersome work processes, manual entries and payroll systems not being updated – these are just some of the major culprits which can make work in the payroll department a burden. In this article we give you an overview of four methods that can streamline work in payroll administration – and make life easier for your payroll employees.
What is sexual harassment, and how should it be dealt with?
In recent months, words and concepts such as sexual harassment, MeToo, sexism and the like have featured prominently in the media. A growing number of women have come forward and described many different actions, which they have each perceived as intrusive and offensive. The aim of this article is to provide you with answers to the most common questions about sexual harassment from an employer’s perspective.
Taxation of company cars – new rules for calculation
As of 1 July 2021, new rules have been adopted for the calculation of taxation of company cars. The new rules apply to all company car schemes – including those entered into before the legislation was passed. In this post we will run through the new rules.
Danish labour must now be taxed in Sweden
Sweden has introduced new rules on the taxation of labour hire with effect from 1 January 2021. The new rules mean that, from the turn of the year, foreign employees must be taxed in Sweden when they perform temporary work in the country – even if their employer is Danish. In this article we present an overview of the impact the new Swedish rules will have on you as an employer.
You can now deposit frozen holiday funds
The new Holiday Act brought in the requirement for holiday funds earned by your employees in the period from 1 September 2019 to 31 August 2020 remain frozen until the employees leave the labour market. You can choose to manage the funds within the company until the time of payment, or you can choose to deposit the frozen holiday funds into the fund.
Do you take care of your employees when they are on leave?
Leave is a period during which employees take time off work. The employment terms set the framework for the leave. Employees are not always entitled to leave, but employers are obliged to give employees leave under certain circumstances, e.g. parental or care leave.
What is the 120-day rule?
The 120-day rule means that, as an employer, you can terminate an employee’s contract with a notice period of one month if they have been absent due to illness for a total of 120 days over 12 months. In this article we have gathered information and facts about the 120-day rule so that you can learn more about your rights and options as an employer.
Change to the Companies Act – the Act on the new control package is introduced
In May the Danish Parliament adopted the government's proposed control package, that includes tools for tackling corporate and accounting fraud. The changes to the Companies Act will come into force on 1 January 2021.
Transfer pricing and the arm’s length principle
When two independent companies trade with each other, the trade is regulated by free market forces. However, when the trading companies are related, there will often be many common interests. This puts the market forces out of play, and concepts such as transfer pricing and the arm’s length principal come into play.
Reduce Costs – Like this!
As a result of the coronavirus, 2020 has been a year in which most companies have sharpened their focus on minimising risks and managing costs with a heavy hand. It is a completely natural reaction in times of crisis. Regardless of whether or not your business is affected by the coronavirus, it always makes sense to have an overview and control over your costs, and to know how you can effectively reduce costs to benefit your business’ liquidity and bottom line.
Transport allowance – field 11 is removed from eIncome
COVID-19 means that many of us have spent significantly more days working from home in 2020 than we normally would have. This means that it is no longer possible for the Danish Customs and Tax Administration to automatically calculate your employees' transport allowance.
The home office – the new normal?
Is life with the coronavirus and working from home the new normal? In this article, you get some advice on how you, as manager, can best handle a situation where your employees work from home.
The new Danish Holiday Act for dummies
This article is aimed at those who do not have time to read the long guides and information articles, but just need an overview of the most essential information about the new Holiday Act.
Illness during holidays – what you need to know about substitute leave
In this article you will learn about how to handle the situation if an employee gets sick before or doing holiday.
Recruitment: What is the cost of recruitment?
Recruitment is the process an employer goes through to find a new employee. The recruitment process typically has five main phases: the job ad and applications; interviews and testing; assessment and selection, and finally employment. Everyone knows that recruitment costs, yet a lot of expenses are still forgotten in the planning.
New initiatives approved to raise companies’ cash positions due to Covid-19
The Danish Government has approved a new bill to postpone the payments of employer tax and the reportings and payments of VAT. This is a consequence of the Covid-19 virus, which is expected to have severe negative consequences on the Danish economy.
Beneficial owners: New law passed
As a consequence of the 5th Anti-Money Laundering Directive, the Danish Parliament passed a bill concerning beneficial owners. The principle changes is companies duty to provide information about the company's control and ownership structure. Learn the practical details of the new law here.
Tax on account for companies – ordinary and voluntary
Tax on account is a prepayment of tax. It is an estimated amount, based on a company's actual tax for the previous fiscal years. Twice annually, the mandatory ordinary tax on account is paid. If the company determines that it is not sufficient, they may choose to supplement it by paying voluntary tax on account once per year.
Recruiting employees from abroad is easy
For some years now, Azets has a fruitful collaboration with the Danish relocation company Settwell placed in Frederiksberg in the center of Copenhagen. When one of Azets’ customers wants to hire an employee from abroad for work in Denmark, the procedure is clear.
Danish Holiday Act – four tasks for you as an employer
The current Danish Holiday Act will no longer be applicable after 1 September 2020, and it will have a significant impact on all employees in the Danish labour market. Therefore, it will also have a significant impact on all companies and the administration of employee holidays.
New Holiday Act on its way in Denmark
The new Holiday Act will come into force on 1st September 2020. The transition period between the old and new Holiday Acts will begin in early 2019, so companies should start preparing for the changes now. We have compiled information on the new Holiday Act that will be most important initially, in order to give a clear overview.
Who is RUT, and why should you know RUT?
The rules and requirements for registration of foreign businesses and foreign labour in Denmark (known as the RUT register) were tightened in June 2016. Foreign businesses or self-employed earners are under a duty to notify the Danish authorities of their work.
GDPR – is your business ready?
On May 25, 2018, the Danish Act on Processing of Personal Data will be repealed when the EU’s new General Data Protection Regulation (GDPR) enters into force. The EU legislation will be supplemented with a Danish law governing the nationally defined special rules, which will be named the Data Protection Act.
Electronic registration of ownership with the Danish Business Authority
This post is intended to describe the two types of ownership registration to be made with the Danish Business Authority. The two types of ownership registration relate to the registration of legal owners and beneficial owners.
Bonuses for employees – what are the rules about taxation?
To many Danes, the prospect of a cash bonus is an attractive part of a total salary package. But when the date for the bonus approaches, many employers and employees are faced with a relevant question; how exactly does taxation work?
Tax on bitcoins – what are the rules?
Cryptocurrencies such as bitcoins have experienced an almost explosive success over the past year. The currencies have quickly gone from being almost mythical to being something that numerous Danes have both traded and invested in.