Hire of Foreign Labour
25 January 2023
Many Danish businesses hire foreign labour, but Danish tax is rarely withheld from the payment. The reason is that labour in most cases is hired through foreign businesses who often also receive the payment.
Such agreements are often overruled by the Danish tax authorities on the grounds that the agreement constitutes hiring-out of labour and that the Danish business has hired the foreign employees. This may lead to considerable tax claims against the Danish business.
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