Академический Документы
Профессиональный Документы
Культура Документы
Engelsk 14 mar 2011 11:16 This guide is aimed at employees and employers, and it provides information about a special tax scheme in which highly paid employees and researchers, who are recruited abroad, and who are able to meet a number of conditions, have the opportunity to work in Denmark for a period of 60 months under a special 26% tax rate without deduction, instead of working under the regular income taxation. The guide is located under "Vejledninger/pjecer til borgere" (P 28), but it is also aimed at employers (E 137). Go to guide - Danish version.
Hvad er nyt?
In the section Tax liability in Denmark before and during employment a not has been deleted, because it gave a wrong meaning. In the section Taxation under the scheme a new text has been added.
Introduction
This guide describes the tax scheme for foreign researchers and key employees who are recruited abroad and who are employed by a Danish enterprise or research institution. The scheme applies to all sectors and to both Danes and foreigners. In the guide, you can read about the conditions which the enterprise and the employee must fulfil in order to be eligible for taxation under the special tax scheme. Whether you are an employee or an employer, it is a good idea to read the entire guide. You can read more about the special tax scheme in Assessment Guide, Double taxation 2011-1 (Ligningsvejledningen, Dobbeltbeskatning 2009-1), section D.B.5.
Nor may you have been posted abroad, within 3 years prior to your employment, as a PhD student with your salary being paid by Danish public funds.
own or have owned 25 per cent or more of the share capital hold or have held more than 50 per cent of the voting rights.
Included are shares belonging to your close family as well as shares belonging to companies etc. over which your close family has exercised control. The definition of close family is set out in Section 4(2) of the Danish Capital Gains Act (Aktieavancebeskatningsloven). If your employer's enterprise is personally owned, you must not:
q q
own or have owned 25 per cent or more of the equity capital enjoy or have enjoyed control over the enterprise.
When SKAT assesses whether control is being exercised, the same criteria are applied as for shareholders. This means that you or your close family must not directly or indirectly own more than 50 per cent of the capital (voting rights). On the other hand, these conditions regarding co-ownership also imply that e.g. a manager or director who is not and has not been a co-owner of the employing enterprise may use the special tax scheme.
Limited partnerships
The employer may also be a limited partnership. But, if so, it is a condition that all the participants in the limited partnership belong to one of the above-mentioned groups (a to f) in relation to the work which is to be carried out.
18.01.2012 Side 3 af 9
If the employer does not fulfil the conditions throughout the period
Taxation under the special tax scheme ceases immediately if you as an employer no longer fulfil one or more of the conditions.
Salary amount
In 2011, the salary, on average, must amount to not less than DKK 69,300 a month before AM-bidrag and tax but after deducting labour market supplementary pension fund (ATP) contributions. The amount of DKK 69,300 also comprises the value of any free car and multimedia. If the employee pays obligatory foreign social contributions, there are circumstances in which these contributions can be deducted in the calculation of tax. See section ATP, AM-bidrag, obligatory foreign social contributions. If the employee pays contributions to an employer-administered pension scheme to which exemption of contributions has been granted, the contributions will not be included in the salary when SKAT assesses if the salary requirement has been fulfilled. This applies to the employer's contributions as well as to the employee's contributions to the pension scheme. See more in the section Pension schemes. No minimum salary requirements apply for approved researchers who are to engage in research.
calendar year. The salary requirement must be met in accordance with the contract of employment. If the monthly salary is too low, the employer cannot raise the average monthly salary above the minimum limit by e.g. paying a bonus at the end of the year.
18.01.2012
Side 5 af 9
Pension schemes
Pension contributions towards employer-administered pension schemes which are deducted from personal income, are not to be included in the basis for calculating income tax. These include contributions to Danish schemes, but the rule generally applies to pension schemes in Sweden, the UK, Switzerland and the Netherlands as well as approved schemes in EU/EEA member states. Contributions to pension schemes in countries other than those mentioned above must be included in the basis for calculating A-tax.
No deductions
The tax is levied on the total salary income without deductions of any kind. Read more about the limitations in the access to deducting employee deductions from and carrying forward losses to other income in the section Deductions in respect of expenses associated with other income. Commuting deductions, food and accommodation deductions, double housekeeping expenses, privately established pension schemes, trade union fees, contributions to unemployment funds or other employee expenses are not deductible from income under the special tax scheme. Nor are any personal allowances.
18.01.2012
Side 6 af 9
The employer must report salary information to eIndkomst (e-income) and pay A tax and AM contributions each month exactly as for the other employees of the enterprise. When reporting salary information for employees under the special tax scheme, the type of income must be indicated with "Forskerordningen (08)" (Researcher scheme (08)) and income type with "26" indicated in the field Kode 68 (Code 68). If the employee has chosen to pay tax at a rate of 25 per cent, the type of income must be indicated with "Forskerordningen (08)" (Researcher scheme (08)) and the income type with "48" indicated in the field Kode 68 (Code 68). If contribution to foreign social security can be deducted at the calculation of A-tax, the contribution must be stated in box 89. At the same time the income type must be indicated with "Forskerordning (08) and the income type with 26 / 48. If an employee switches to ordinary taxation during his or her employment, the information for periods during which his or her salary was paid under the special scheme must be reported to eIndkomst as mentioned above. Periods during which income is subject to ordinary taxation must be reported separately to eIndkomst with an indication of the type of income as "almindelig indkomst" (ordinary income). Do indicate "26" or "48" in the Kode 68 (Code 68) field here. Read more in the guide eIndkomst. Please note that this guide is only available in Danish.
18.01.2012
Side 7 af 9
If you are subject to limited tax liability or if you are fully tax liable and a resident abroad in accordance with a double taxation treaty, you are only entitled to deduction for expenses associated with income which is taxable in Denmark pursuant to the treaty with the country in question. On certain conditions, however, you may use the cross-border worker rules (Section 5 A-5 D of the Danish Withholding Tax Act (Kildeskatteloven)) together with the special tax scheme. According to these rules, you are entitled to deduction for certain expenditure incurred in connection with family and personal circumstances to which normally only persons with full tax liability who are resident in Denmark are entitled. The rules are described in D.B.8.
Approval of researchers
The concept of "research work" has been defined by the OECD and will be applied when determining whether a person fulfils the conditions for being taxed under the special tax scheme for researchers. R&D is defined as comprising creative work undertaken on a systematic basis in order to increase the stock of knowledge and the use of this stock of knowledge to devise new applications. This applies both within technical/scientific areas such as research within health science, social science, financial planning, system analyses etc. The joint denominator for these areas is the requirement for a news element. No distinction is made between research work in public research institutions and similar work in private enterprises. Thus, research activities undertaken in, for example, the pharmaceutical sector or the IT business can also be included.
Approval procedure
The approval procedure is described below:
q
In connection with employment at institutions covered by the Danish University Act (Lov om universiteter m.fl.) and the Danish Government Research Institution Act (Lov om sektorforskningsinstitutioner), the management of the institution decides whether the qualifications as a researcher can be approved.
q
Other public institutions and private enterprises In connection with employment in enterprises other than the public research institutions mentioned above, one of the governmental research councils determines upon application whether the qualifications can be approved as a researcher.
In order to obtain approval for his or her qualifications as a researcher, the taxpayer must be able to document qualifications which correspond to the level required to be appointed as an assistant professor (adjunkt) or at a higher level or as a researcher/project researcher (forsker/projektforsker) or at a higher level at institutions as mentioned under "Public research institutions". Such employment requires scientific qualifications equivalent to those required at PhD level or a similar level. To be covered by the rules of the researcher scheme, it is required that the employee, in addition to having his/her qualifications as a researcher approved, engages in research. This must be stated in the employment contract which is included in the application of approval as a researchers. It must be a proper research position. Positions which do not contain the usual research obligations do not qualify for the special tax rules for researchers. This does not mean that the position cannot contain teaching obligations, but the research obligation must amount to an extent which is usual for a research position at a university or a research institut. The employee must have been approved as a researcher before the commencement of the contract of employment. It
18.01.2012 Side 8 af 9
is accepted, however, that the employee takes up his or her duties before such approval is granted if the approval is received within the time it normally takes to process an application for approval of qualifications as a researcher. An executive order has been issued regarding the approval of researchers etc. pursuant to Section 48 E of the Danish Withholding Tax Act, order no. 568 of 22 June 2000.
18.01.2012
Side 9 af 9