If as a Danish business you hire an employee who does not live in Denmark and who has an employer from another country than Denmark, the employee is liable to pay tax according to the rules on international hiring-out of labour.

  • The employee is liable to pay 8% labour market contributions (AM-bidrag) and 30% hiring-out of labour tax.
  • You as a business must ensure payment of the tax.
  • The rules on hiring-out of labour apply even though the foreign employer is registered for VAT in Denmark.

For further legal information, please see SKAT's legal guide. Note that the guide is only available in Danish.

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