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Domestic relief

Foreign relief may be granted by credit against Danish taxes dues, under Tax Assessment Act, s 33 (ligningslovens). The deduction amount is the lower of the:

1. Ìý

   •ÌýÌýÌýÌý total Danish tax which would be due on foreign income

2. Ìý

   •ÌýÌýÌýÌý foreign tax paid

Under Tax Assessment Act, s 33A, an individual can reduce their total income tax due in Denmark by the amount that falls proportionately on foreign earned income. The individual must be:

1. Ìý

   •ÌýÌýÌýÌý subject to withholding in Denmark

2. Ìý

   •ÌýÌýÌýÌý work outside of Denmark for six months or more

3. Ìý

   •ÌýÌýÌýÌý not return to Denmark for more than 42 days (including workdays) in any six-month period

The reduction in tax does not include the part of the wage income that can be attributed to work in Denmark.

Where a treaty gives full taxing rights to Denmark then the total income tax is reduced by half of the amount that falls proportionately on the foreign income (known as 'half relief'). In the absence of treaty it is reduced