Bad News For Seconded Employees

It now seems that the tax relief available under section 33 A of the Danish Tax Assessment Act will be abolished in the near future. This means that Danish businesses which send employees to work in other countries should review their secondment policies and contracts and cost accounts, and assess the business and tax implications of the change in tax law. Businesses should also identify and consider alternatives and decide how to brief affected employees.

Background

In connection with the tax reform agreed in June 2012, the Danish government proposed to abolish the special rule in section 33 A of the Tax Assessment Act which for many years has exempted Danish employees from paying Danish tax on income earned while working abroad for more than six months, subject to certain conditions.