Do you have to work remotely for a foreign employer?

remotely work

Many Danish employers can just as well have an employee sitting in Sønderho as Shanghai. A foreign employer can also very easily see its advantages in having an employee living in Denmark. Remotely work in common these days…

Perhaps you have contact with a foreign employer who would like to have you in Denmark as a “remote worker”?

We are happy to help you get a handle on all practicalities in connection with remote work – and not least to get the foreign company to understand our Danish system.

Safe to work remotely

First of all, the foreign employer should not fear that it will be a “permanent establishment” with the corresponding obligation to pay corporation tax when they register with in Erhvervsstyrelsen, the Danish Commerce Register. At least not for the first two or three years.

A foreign company can register in Erhvervsstyrelsen without any problems with Inwema as resident representative. This means that Inwema, which is behind ExPatDenmark.dk, ensures that social contributions are paid for the employee living in Denmark. As soon as an employee spends more than 25% of his working time in Denmark, social contributions must be paid in this country. And it’s not even that bad, because while Denmark collects approximately 1% of the salary in social security contributions, the figure is much higher in many other countries.

It is also a good idea to let Inwema ensure that income tax is withheld for the employee every month. This means that we make payslips and ensure that the provisions of the employment contract are reflected in the payslip. We also keep an eye on compliance with the Act of Salaried Employees and the Holiday Act.

The employee can choose to pay the income tax themselves as B-tax, but then the employee misses out on a wide range of benefits. Feel free to book a consultation with Inwema so that we can go into detail with your particular situation.

Are you going to be posted to another country? Read more here (in Danish)

 

What do the Danish social contributions consist of?

The Danish social security consists of

  • ATP Lifelong Pension – a statutory pension scheme
  • Combined Payment (Samlet Betaling) – a number of employer contributions that are brought together under one hat
  • Work injury insurance – an employer, Danish or foreign, is obliged to take out a work injury insurance

 

Read more about what it’s like to work remotely for a foreign employer