Global income covers all income that a person or company earns both in Denmark and abroad. It includes salary, pension, share income, interest, dividends, and other income, regardless of where in the world it is earned.
As a rule, global income is taxed in the country where you are tax resident, but double taxation agreements between Denmark and other countries may affect where and how you must pay tax.
Frequently Asked Questions About Global Income
What is global income?
Global income covers all income that a person or company earns both in Denmark and abroad. It includes salary, pension, share income, interest, dividends, and other income, regardless of where in the world it is earned.
Where is global income taxed?
As a rule, global income is taxed in the country where you are tax resident, but double taxation agreements between Denmark and other countries may affect where and how you must pay tax.
Do I have to report foreign income in Denmark?
If you are tax resident in Denmark, you are fully tax liable and must declare all your income, including from abroad. You are normally considered tax resident in Denmark if you have a permanent home in Denmark or stay in Denmark for more than 183 days within a 12-month period.
This means that even if you work or invest abroad, you must still report your global income to the Danish Tax Agency.
What is double taxation, and how is it avoided?
Double taxation means you risk paying tax on the same income in both Denmark and another country. To avoid this, Denmark has entered into double taxation agreements (DTA) with many countries. The agreements determine which country has the right to tax, and how credit or relief is given.
- Credit method (relief for foreign tax)
- Exemption method
SkatteInform can help assess which method applies to your case, so you avoid double taxation and mistakes in your tax return.
How are foreign investments and dividends taxed?
Interest income, dividends, and capital gains from abroad are part of your global income and must therefore be reported to the Danish Tax Agency. Dividends are normally taxed in the source country at a fixed percentage. Denmark then taxes the same income but gives credit or relief for the foreign tax.
SkatteInform can carry out a professional review of your portfolio and ensure you are not double taxed and that credits are applied correctly.
How is global income taxed for companies?
Companies domiciled in Denmark are generally taxed on their global income, regardless of whether the income comes from Denmark, the EU, or the rest of the world. If the company has subsidiaries or permanent establishments abroad, income and expenses must be allocated according to international rules, including transfer pricing.
This area is complex, and many companies choose to get tax advice to avoid mistakes and reassessments.
How do I know if I am tax resident in Denmark?
Whether you are tax resident in Denmark depends on your personal and economic ties. The Danish Tax Agency assesses, among other things, where your home and family are located, and where you work and have assets. If in doubt, the double taxation agreement between Denmark and the other country can determine tax residency. It may be necessary to get professional help to document the circumstances correctly.
How do I report global income?
Your global income must be included in your annual tax statement, whether or not tax has been paid abroad. The Danish Tax Agency then calculates whether you can get relief for foreign tax under the double taxation agreement. Mistakes in reporting can result in extra tax payments or fines, so it is important to report correctly.
How can SkatteInform help with global income and international tax?
At SkatteInform, we advise both individuals, Danes abroad, and companies on global income, tax on secondment, investments abroad, and double taxation. Contact us for a conversation about your options. We review your situation, assess advantages and disadvantages, and give a clear overview of the process.
Disclaimer
As the above is for guidance purposes only, we accept no liability for decisions that may be made based on the above without prior individual advice. We accept no liability for errors and omissions.