Denmark Tax Agency Clarifies Withholding Tax Liability of Part-Time Resident Working for Swedish Employer

The Danish Customs and Tax Administration June 2 posted online Tax Council Binding Answer No. SKM2023.252.SR, clarifying tax residency and withholding tax liability of an employee of a Swedish company who resided part-time in Denmark. The employer provided the taxpayer with living arrangements in Denmark, which the taxpayer used approximately 8 nights per month, but not more than 180 days in a 12-month period. The taxpayer sought clarification on withholding tax liability in Denmark. The Tax Council confirmed that: 1) the taxpayer isn’t fully liable for taxes in Denmark, based on the non-continuous stays in Denmark for fewer than 180 …