Individual - Foreign tax relief and tax treatiesLast reviewed - 27 February 2023
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.
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:
|Argentina||Faroe Islands||Latvia||Sri Lanka|
|Belgium||Guernsey||Montenegro||Trinidad and Tobago|
|British Virgin Islands||India||Norway||Uganda|
|Canada||Ireland, Republic of||Philippines||United Kingdom|
|Cayman Islands||Isle of Man||Poland||United States|
|China, People's Republic of||Italy||Romania||Vietnam|
|Commonwealth of Independent States (CIS)||Jamaica||Russia||Yugoslavia|
|Czech Republic||Kenya||Slovak Republic|
|Egypt||Korea, Republic of||Slovenia|
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:
- Cyprus (Greek part)
- Czech Republic
Other countries with agreements
- New Zealand
- South Korea
- United Kingdom (Great Britain and Northern Ireland)
- United States