Relocation Taxes in Denmark (Urgent)

Hi

I don't know what employment under 48E covers over?

But normally, all income is taxable whether it is direct or indirect income.

You can address the taxation authority itself which I'll recommend you to do.
https://www.skat.dk/SKAT.aspx?oid=5050

/Nellie

Hi /G

This is not normal in my opinion. I came here on work visa and I didn't have to pay any taxes on the flight. If the company books the flight for you and your wife, you shouldn't be paying any taxes on it. It's travel cost covered by the company.

As for Visa fee, I renewed/change my visa here 3 times I never had to pay anything or if I did pay, then I would expense it to the company and they will refund me the money.

For the accommodation, it's a bit tricky but if it's on the name of the company and not yours then you shouldn't have to pay anything on that either.

Same goes for the tax consultant.

That being said, if your relocation package is delivered as "Cash"  only, then yes it is considered a direct income and you need to pay taxes on it.

Hope this helps.

Of course you can still contact SKAT for more information.

/JF

I am in no doubt that you have to pay tax of the amount, but it isn't an A-income but a B-income which you have to report yourself. The company should list it as such, but perhaps some companies don't post it the right way.

If is a change of location inside the same company, abroad or here, it will still be taxable, but you will in that case be allowed to have some deductions before taxation.

I would be highly surprised if I am wrong about these matters, so don't hesitate contacting Skat.

/Nellie

You are probably right @Nellie. 

I still think that some things such as the Visa Fee and Air Ticket should normally not be considered as "Relocation Package" because you can't relocate if you don't have a Visa   For those Visa, it's usually the employer that initiate the procedure and pay for the fee online.

As mentioned here : https://www.nyidanmark.dk/en-us/coming_ … ployee.htm

Before submitting the application, you or your employer must create a Case Order ID and must normally pay a fee. The Case Order ID must be stated in the application.

The fee is a case processing fee. This means that the fee covers the processing of your application. Consequently, the fee will not be refunded if your application is processed - regardless of whether you are granted a permit or your application is turned down because you do not meet the requirements. Similarly, the fee will not be refunded if you withdraw your application.

As for the air-ticket, if it's an employee business travel budget then it's on the company to pay that and it's not an income. The rules could have changed though.

/JF

Hej Nellie,

Thank you for revert.

Yes, I am relocating in the same company, so Relocation might be taxable. However; I believe if someone starts fresh then their cases might be a bit different.

Since you mentioned about me being eligible for Deductions that I assume like:

1- For my non working wife
2- For my toddler kid (as State pays back quarterly for children in DK)
3- Any other deductions you may suggest?? As I want to read about all these from now itself.

Otherwise, without getting deductions and paying taxes on my Visa, Tickets etc. which company is arranging, I would stand in a big loss from the beginning thus I have started thinking whether I shall move or not. :-/

Tak,
G

Hi Jean,

Thank you for revert on this. May I know, when you moved to DK, have you got a new job or moved in the same company internationally?

I am working with a Danish Firm and my case would be treated as Transfer.

Also, my HR told me that she is not fully aware of the Deductions and Taxes in my case but they will appoint a Tax Consultant for me which will cost me as well because it would be a Service and I need to pay Taxes on that.    SO, I am a bit reluctant to get Tax Consultant honestly.

I have worked in many countries till now but Denmark seems to be having extremely different Tax system. I never paid Taxes on my Tickets or Visa at least, anywhere in the world yet.

If possible; try to findout with your colleagues / friends and let me know if I could go back and ask my HR team to revisit my relocation package to save such stupid taxes, since I feel like that I would be in greater loss if I have to pay Taxes on almost everything. 

Thank you in advance!!

/G

As always, there is a general rule, but then comes all the exceptions, and when it is about understanding law rules, it is always more than complicated why I still recommend you to contact the authorities or make use of the tax consultant.

Maybe, it will be practical for you with a tax-dictionary so it is here:
http://www.srf.dk/ordboguk.htm

Other general information:
https://www.justlanded.com/english/Denm … e/Jobs/Taxhttp://www.skat.dk/getFile.aspx?Id=121617

This might be of special interest for you as it is above transfer within the same employer:
https://tax.dk/lv-2011-2/lva/A_F_1_5_1.htm

Regarding taxation, the different issues will be handled otherwise if it is all about a transfer, and not a new job (to your advantage).

In the end, the flight tickets for you and your family will not be taxated, but I see two scenarios:

You pay for the tickets in advance and get them refunded by the company. In this way, they will not be referred to you as a person, and you will have no fiscal balances.

The other scenario is that the company buy the tickets. They will have to report the expences as a B-income when the year is over, but when you receive the annual statement you can deduct the full amount. Mere accounting, but the result will be the same in the end. No tax.

In connection with a transfer, you are also allowed to deduct your expences spent on you' installation' which I interprete as settlement including the Visa fee and the rent for the first couple of months. But how does Skat interprete the word?

I must admit that I don't know why you cannot get relevant information from the company as we are dealing with an international company which must have met precisely the same questions every time they have transferred or employed an employee.

Neither do I understand why the expences to the tax consultant is a personal income for you and not an operating post for the company? I would believe they could choose to post it that way, too.

I take that other expats will have been treated otherwise as it all depends on how their companies have chosen to post the expenses whether it has been correct or incorrect.

Do contact the authorities about these matters.

You are also welcome to write me a pm if you want more personal information.

/Nellie

Hi Gaurav,

In my opinion, it is better to have the tax consultant as that will relieve you from so much of difficulties. I see how good it is to have someone helping you on this. With regards to taxation on other benefits, it is very common that the benefits being taxed. However, since your case has to be dealt as internal transfer, I am not sure how this will be perceived. Try to see if you can talk to the tax consultant beforehand. That would help you.

Best Regards

Thanks Billy.

Regards,
G