Denmark

Foreign tax relief

An individual resident in Denmark is entitled to deduct foreign income taxes paid or accrued on foreign-source income from the Danish tax payable up to a maximum of Danish tax paid on that part of the taxable income that is foreign-source income. Relief according to DTTs may be claimed if their provisions are more favourable.

Unutilised credits are not refundable and cannot be carried back or forward.

Tax treaties

Double taxation treaties (DTTs)

To avoid double taxation on income, Denmark has concluded DTTs with a large number of countries. All tax treaties contain rules on tax information exchanges, and specific EU regulations also apply.

Double taxation may also occur in relation to inheritance tax. To counteract this situation, Denmark has concluded treaties with the other Scandinavian countries, Germany, Italy, Switzerland, and the United States in this respect.

Countries with which Denmark currently has DTTs and where the treaty contains a remuneration clause are:

Social security agreements

EU/European Economic Area (EEA) countries or countries with which Denmark has entered into an agreement on social security (foreign assignments contained) include:

EU countries

• Austria
• Belgium
• Bulgaria
• Croatia
• Cyprus (Greek part)
• Czech Republic
• Denmark
• Estonia
• Finland
• France
• Germany
• Greece
• Hungary
• Ireland
• Italy
• Latvia
• Lithuania
• Luxembourg
• Malta
• Netherlands
• Poland
• Portugal
• Romania
• Slovakia
• Slovenia
• Spain
• Sweden

EEA countries

• Iceland
• Liechtenstein
• Norway

Other countries with agreements

• Australia
• Bosnia-Herzegovina
• Canada
• Chile
• China
• India
• Israel
• Macedonia
• Montenegro
• Morocco
• New Zealand
• Pakistan
• Philippines
• Quebec
• Serbia
• South Korea
• Switzerland
• Turkey
• United Kingdom (Great Britain and Northern Ireland)
• United States