There are certain situations where you do not need to notify in RUT.
Notification in RUT is not necessary in the following situations:
Participation in seminars and conferences, including researchers, lecturers and similar who have been invited to teach or make a speech, etc.
Participation in individual artistic events by professional artists
Participation in business trips for foreign businesses/companies which do not have a permanent place of business in Denmark
Participation in individual large sports events or trials/training at a Danish sports club by professional sportspeople/coaches
Supply of consultancy services within accounting and auditing for up to eight days.
Internal posting by a business for up to eight days. However, this does not apply if the service involves construction work, agriculture, forestry and nursery work, cleaning, including window cleaning, as well as hotel and restaurant work.
Cabotage (transport of goods in Denmark in connection with international transport)
Fitting technical equipment or installations if the work does not take more than eight days and if the employee or self-employed person working in Denmark is a specialist or qualified to fit, install, inspect, repair or inform about, technical installations in Denmark.
You need to place your RUT number in certain places to show that your company is notified in RUT.
At the construction site, signs should clearly state which companies are working there, i.e. who is providing the service. Along with your company name, your RUT number should be clearly written on this sign. If you have a company vehicle or a company car, the RUT number must be placed in the front window of all vehicles used in connection to your activities.
Generally, when you provide services on a temporary basis you are not subject to VAT in Denmark.
However, you need to register for VAT if you are:
A foreign service provider who provides services for private persons in Denmark
A foreign service provider who provides services to a registered Danish company that are not subject to reverse charge (other services than services provided in connection with an immovable property, transport of persons, restaurant and catering services and short-time hiring-out of means of transport)
Hiring sub-contractor(s) that provide services to your company when you are carrying out a task in Denmark
There are certain services that are exempt from VAT. You can read more about these services below.
The following are examples of services exempt from VAT:
Hospital treatment and medical services, including chiropractic, physiotherapy, other actual healthcare and dental services. Furthermore, treatments provided by alternative therapists and other healthcare professionals are also exempt.
School teaching and teaching on higher education programs. Course activities, unless they are aimed primarily at businesses and institutions and the service is provided for commercial purposes.
Sales of real property, exempt for sale of new buildings and building plots.
Renting out real property.
Passenger transport. Please note, that for buses the exemption only applies to road passenger transport, and that tourist bus services are subject to VAT.
Literary, composer and other artistic activities, including payment of actors and musicians, payment of guest speakers and any kind of journalistic activities. The VAT exemption does not apply to sale of art objects and events where the artist charges entrance fee.
In most cases, businesses which carry out VAT exempt activities must pay a specific Danish payroll tax (lønsumsafgift) instead.
You are required to register when your annual profit before deduction of interest exceeds DKK 80.000. Payroll tax is calculated on the company’s payroll, including any form of wages which the company’s employees have received. The tax rate varies between 3.08 - 9.13% of the payroll etc., depending on the type of the exempt activities.
If certain conditions are met, you don’t have to pay tax for your employees when they carry out work in Denmark
You are not obliged to pay taxes for your employees that you post to Denmark if they are not working in Denmark for more than 183 days within a 12 month period and your company is not registered in Denmark.
Your company is obliged to pay taxes for employees that have a registered address in Denmark. In order to do that your company needs to be registered as an employer. In order to register as an employer you need to fill out this form (link).
If your company has established a place of business in Denmark you will have to pay taxes for your posted workers from day 1. If your posted employees work in Denmark less than 183 days, they will have to pay tax from the income they earn in Denmark and you should withhold this from them and pay it to SKAT. This implies that your employees are taxable on their Danish income but that they remain fully tax-liable in another country. If your posted employees work in Denmark for more than 183 days, they will as a rule have to pay tax from all their earned income – also income from abroad.
NB! If you hire-out your employees to carry out work in Denmark for a Danish company, your hired-out employees must pay 8 % labour market contribution (in Danish AM-bidrag) and 30% gross tax of their total wage. Learn more about how the tax is calculated at skat.dk http://skat.dk/SKAT.aspx?oId=2085188&vId=0
Contact the Danish Customs and Tax Administration for more information. If your employees need tax cards you can contact the International Citizen Service, see link: http://icitizen.dk/
There is no minimum wage defined by law in Denmark, but if you hire employees or bring employees with you to Denmark, you will have to know about the Danish labour market model.
Wages and working conditions are defined in collective agreements between the trade unions and employer’s organizations. As an employer you are obliged to follow the wage level defined by the collective agreements. Please be aware that the rules are the same whether you bring employees from your home country, any other country or Denmark. You can contact the Confederation of Danish Employers to get more information about your obligations as a Danish employer, see link: http://www.da.dk/
When you hire employees that have a registered address in Denmark, your company must pay social security contributions for these employees.
The social security contributions include labour market pension, contribution to labour market fund for occupational diseases, and pay sickness benefits. If you have questions on your responsibilities regarding social security contributions you should contact the ATP by phone +45 48 20 49 14
You must insure your employees against workplace injuries.
In order to insure your employees against work accidents, you must take out an insurance policy at a private insurance company. As a rule the Danish private insurance company will ask for the company´s registration number in Denmark (in Danish: CVR-number). However, the National Board of Industrial Injury (Arbejdsskadestyrelsen) can help you if your company doesn’t have a CVR-number. They can be contacted phone +45 72 20 60 00 or by email firstname.lastname@example.org.
As a third-country national, you have different options to obtain information about the relevant Danish rules.
When you are a third-country national living and wanting to start a business in Denmark, we recommend that you contact the local business service (Erhvervsservice) in your municipality.
If you would like to discuss growth opportunities for your company, you can contact your local Væksthus. You can find the local Væksthus by visiting https://startvaekst.virk.dk/ and clicking on the region, you are interested in.