On this page you can gain access to relevant practical information for your business about working environment, VAT, taxes etc.
All companies must have a NemKonto. NemKonto is the common public payment system. All payments from the government will be transferred to the company NemKonto. This means that your business must have a NemKonto to receive for example excess VAT and per diem reimbursement.
All companies must have a NemKonto
All companies in Denmark must have a NemKonto. It is an ordinary bank account used by the company in advance. NemKonto system means that public authorities pay to corporate account via their VAT number. NemKonto system is thus a database that connects the company's CVR number of the bank account, the company has selected as its NemKonto.
Companies can also pay with NemKonto
Your company can also be connected NemKonto system for payment of your employees. A large number of private companies have already been connected NemKonto and keep coming to.
Read more on the NemKonto website.
On your Digital Post you receive mails from the public authorities. All companies and organizations with a VAT number are not mandatory for Digital Post for businesses. Private limited companies, partnerships, corporations, foundations, associations and foreign companies with a Danish company registration number, sole proprietorships and volunteer associations are covered by Digital Post.
The solution means that your company can log on Digital Post both virk.dk and e-boks.dk and thus access all your mails in one place.
Read more about Digital Post on the website of Life in Denmark.
A total of 91 job centers are placed throughout Denmark. Basically, there is one job center in each municipality in Denmark.
In each job center everyone have free access to computers as well as general information about how to find a job in Denmark.
The concept is self-service, which means that the job centers provide resources enabling people to find work and an IT-system to advertise job vacancies for employers by using a job and CV database called Jobnet.
Even though Danes generally speak English well, you may well benefit from learning the Danish language as a resident in Denmark.
The Danish Ministry of Refugee, Immigration, and Integration Affairs seeks to ensure that foreign employees and their families are well received in Denmark, so they quickly feel at home, learn Danish, and start establishing their own networks.
The municipal council offers Danish classes to adult foreign national living in the municipality, who are registered at the public registration office.
The offer is for Danish classes for up to three years from the time, when the participant becomes eligible to start Danish classes - provided, however, that the person continues to have a valid residence permit.
List of nearby language centers:
• Language Center Viborg
• Language Center Silkeborg
• Language Center Aarhus
NemID is your secure login on the Internet when using online banking, making changes in your tax folder, or when using self-service solutions from public sector institutions.
Businesses and government agencies also use NemID. A NemID employee signature can identify you as an employee in an organization or company. For example, you log on public services on behalf of your workplace, you can sign documents or you can send and receive secure e-mails.
Please note that most self-service solutions are only available in Danish.
Read more about NemID here.
When you as a foreign company do business in Denmark, you must, in some cases, pay tax in Denmark on any profit generated by your company. This applies if your company establishes:
- A place where the company is managed
- A branch
- An office
- A factory
- A workshop
- Building, construction, assembly or installation work, or a supervision company in company in connection with these works over a certain period of time.
The time period depends on the individual agreements between Denmark and your country. Normally the time period is between 6 to 12 months. If your business activities in Denmark exceeds this time period, your company will be regarded as established permanently in Denmark.
What to do when your company has employees?
When you establish a company in Denmark and you have employees that carry out work in Denmark, you must register as an employer. If you already have a Danish CVR/SE-number, you can register as an employer by using this form (only in Danish). You have to send the form to the Danish Business Authority by e-mail firstname.lastname@example.org.
If you do not have Danish CVR/SE number, you can register your company as an employer here.
When you have registered as an employer in Denmark, you must deduct tax and labour market contribution of 8 % (in Danish called AM-bidrag) from each wage payment. You have to declare and pay the tax and AM-contribution to SKAT on a monthly basis via SKAT´s online tool TastSelv Erhverv under the heading ‘eIndkomst’.
Where can I get more information on tax?
For legal assistance regarding tax, contact SKAT at +45 7222 1818.
Social security and workers' compensation
When establishing a business in Denmark you have to pay social security contributions for your employees.
If your company has employees that carry out work in Denmark you may be obliged to pay social security contributions under the Danish law.
Your employees will be subject to Danish social security Law, if it is not otherwise stated in EC regulation 883/2004 on the coordination of social security schemes or in conventions on social security Denmark has signed.
If your employees are subject to Danish social security rules
When your employees are subject to Danish social security rules, you as a company must pay labour market supplementary pension (in Danish: ATP) for those employees that:
Are aged 16 years and over, work at least 9 hours a week, and work as wage earners.
When you are obliged to pay ATP, you will also need to pay for financial support scheme for trainees (in Danish: AUB), financing contribution and contribution to maternity benefits.
Pay contribution to labour market fund for occupational diseases (in Danish: AES)
Pay their sickness benefits in connection with their illness
Insure your employees against workplace injuries.
If you have questions on your responsibilities regarding social security contributions (comprising ATP, AES, AUB, financing contribution and contribution to maternity benefits), you should contact the ATP by phone +45 48 20 49 14.
What to do when you have to pay social security contributions in Denmark?
In order to pay ATP and AES and other contributions for your employees, you must register as an employer. You have to submit the registration at the latest 8 days after the first payment of wages. If you do not have Danish CVR/SE-number, you can register your company and as an employer at the same time by using the application at the Business in Denmark website.
How to declare and pay ATP and AES contribution?
You have to declare the ATP contribution to SKAT via their online tool TastSelv Erhverv under “eIndkomst”.
After you have paid the ATP, you will automatically receive a bill from AES. The amount of AES contribution is calculated on the bases of your declaration to “eIndkomst”.
Insurance against occupational injury
As an employer, you are liable for the consequences of accidents and industrial diseases to which your employees are exposed. In order to insure your employees against work accidents, you must take an insurance policy at a private insurance company. If an accident occurs and your company does not have insurance, you will be obliged to pay a premium and contributions for the period that your workers should have had the insurance coverage. You will also be sanctioned with a fine, and you will be obliged to pay compensation to the injured employee.
Notification of accidents
You must report the injury to the insurance company and to the National Board of Industrial Injury. Please contact the National Board of Industrial Injury to know how to report the accident.
Where can I get more information on insurance for industrial injuries?
If you need guidance on AES contribution and insurance against workplace injuries, you can always contact The National Board of Industrial Injury by phone +45 72 20 60 00 or by email email@example.com.
The Danish labour market is characterized by the flexicurity model and a high degree of job mobility.
Denmark has a high employment rate and the majority of both men and women work.
In Denmark, workplaces offer good working conditions for employees with family-friendly working hours, a modern working environment and often excellent opportunities for employees to upgrade their skills and competencies.
People say that knowledge is the most important resource in Denmark. To be competitive internationally, Denmark must have a high level of knowledge. This is often reflected in the excellent opportunities for further training and upgrading qualifications offered by companies.
Most workplaces in Denmark are characterized by an informal approach to collaboration – also between management and employees. Normally, there are open and constructive dialogues between managers and employees.
The Danish labour market is based on the flexicurity model. The word flexicurity is a blend of flexibility and security. The essence of the Danish flexicurity system is a flexible labour market, in which a business can easily adjust its workforce to the current economic situation and is a social safety net with allowances for the unemployed.
The Danish labour market is to a great extent regulated by the various players in the labour market in contrast to regulation by legislation. Within the Danish Model employers and employees reach voluntary collective agreements on payment and working conditions. The trade unions play a pivotal role in the Danish labour market, and there is a high level of union membership among Danish workers.
Trade unions assist with cases regarding payment and working conditions and can help in connection with work-related injury cases, rehabilitation, etc. Some trade unions also offer personal consultancy and career planning or offer discount schemes on petrol, shopping centers, insurance, etc. These offers vary according to the industry with which the trade union is associated.
As a foreign company established in Denmark, you must pay VAT in Denmark when you sell goods and services. In some cases, your company must also pay taxes on any profit generated by your company.
When do you have to register for VAT?
As a foreign company established in Denmark, you must register for and pay VAT in Denmark when you sell goods and services. In some cases, your company must also pay taxes on any profit generated by your company. If your company has employees, it is your responsibility to withhold Danish tax and labour market contribution from the wages that you pay to your employees for the work they carry out in Denmark.
You have to submit the application for VAT registration within 8 days before you start doing business in Denmark. If you do not submit the application in time or not at all, or the information that you have provided is not correct or insufficient, you may be sanctioned with a fine.
How to register your company?
You register your company by filling out a form. You have to upload the form via the website of Business in Denmark. You may afterwards be asked for additional documentation, for instance, documentation that shows whether or not your company has debt or/and documentation of your company’s registration in your home country.
The registration certificate with your Danish CVR/SE-number will be sent to your postal address. If you have Danish NemId and you want to register your company as a Danish company you can do it online at Virk (Danish version).
When you have registered your company for VAT, you must declare VAT for each VAT period. Information about the VAT period is given in connection with registration. You must declare VAT via SKATs online tool TastSelv Erhverv (in English and Danish).
You will receive a password to TastSelv Erhverv, which you must activate within 30 days. You must use this password every time you log in to TastSelv Erhverv.
If you forget to declare your VAT, SKAT will automatically assess the VAT amount you have to pay. You will also be charged a fee and interest, if any.
Payment of VAT
You must pay your VAT when you declare your VAT. Payment is made by international transfer. SKAT will inform you of the account, where you must pay your VAT.
If you have a bank account in Denmark (Nemkonto) you can pay your VAT via online banking or via Nets (PBS). If you want to pay VAT via Nets (PBS), you have to apply for it in the TastSelvErhverv.
Learn more about the payment of VAT by international transfer at the website of SKAT on TastSelv Erhverv (in English and Danish).
Where can I get more information on VAT and other taxes?
• For technical assistance regarding registration of your company, contact the Danish Business Authority at +45 7220 0030
• For legal assistance regarding VAT, excise and customs duty, contact SKAT at +45 7222 1818
When establishing a company in Denmark you will have to follow Danish rules on working environment in the workplace. The Danish Working Environment Authority (WEA) is responsible for instance inspecting the working environment in Denmark.
What are the main rules?
Most of the Danish rules are based on EU regulation. Therefore, the Danish rules are probably not far from the rules in your home country. However, the Danish regulation on working environment in the workplace is typically as strict as or stricter than rules in other EU countries.
It is your responsibility as an employer to ensure compliance with the working environment rules. Therefore, it is your responsibility to ensure that the employees can carry out their tasks without compromising health and safety in the workplace for instance by giving them the necessary instructions.
The WEA has a priority focus on three key areas within working environment:
• Preventing accidents
• Preventing muscle and skeleton problems
• Psychological working environment
The rules on working environment are administered by the WEA through inspections on the workplace and guidance to companies. In Denmark, you will find that the WEA does a large number of inspections. When the WEA visits you for an inspection, they will check whether your health and safety conditions are in compliance with the working environment regulation. The WEA will for instance look at the company’s own health and safety performance, ergonomics, use of technical machines and dangerous chemicals.
When your company is inspected, you will need to have at least the following documents ready:
• Health and safety risk assessment (in Danish it is called an ‘APV’)
• A written company policy on smoking in the workplace and company cars
• Relevant instructions for use of machines and dangerous substances
In certain sectors, special sector rules may apply. For instance, the construction sector has a special set of rules relating to working environment. Contact the WEA or the relevant employers’ organization for information on rules for your sector.
The WEA also has workplace assessment checklists for specific sectors such as building and construction. These checklists are in English and can be downloaded at WEA’s website.
Obligation for management and employees to cooperate on working environment
All companies with employees have to follow the rules on cooperation on health and safety at the work place. As a general principle, the employer has the responsibility that all work is carried out in a safe and secure manner. Management and employees both have the obligation to cooperate on working environment. The specific rules can be found here.
Among other things, as an employer you have the obligation to conduct a yearly discussion with your employees of the working environment in the workplace. During the discussion you should address the working environment situation in the company and ‘who does what’ in relation to working environment in the future.
When will I be inspected by the WEA?
As a general rule, inspections will be carried out unannounced. The WEA has the legal right to enter the work place of your company. The inspectors also have the right to speak with all employees.
What are the sanctions?
The WEA has the possibility by law to give you a sanction. There are generally three types of sanctions.
• You can be told to make changes to the working environment at the workplace immediately or within a time limit
• The WEA can close down your workplace if the working environment conditions are very dangerous
• The WEA can give you a fine
If you do not comply the WEA will ask the police to initiate criminal charges against you.
Where can I get more information on working environment rules?
You can get more information on working environment rules at the website of the WEA.