Danish payroll service

denmark tax

Administering a Danish payroll can be complicated, time-consuming and has risks in terms of time spent, compliance and unnecessarily incurred costs.

There are rules related to onshore and offshore work as well as specific rules in relation to work carried out by foreign employees. Although Denmark follows EU legislation with respect to most taxation rules, there are differences that any employer should be aware of.

At Binks Overseas we provide a fully compliant, outsourced payroll service to recruitment companies and small businesses that work within Danish territories and offshore, within the Danish Continental Shelf.

Through our offices based in Copenhagen, we can administer monthly payroll, complete reporting to the Danish tax authorities and act as agent for our clients where necessary.

In dealing with payroll taxes in Denmark it is necessary to understand the employer responsibilities in relation to compliance and reporting requirements. Our all-inclusive service provides peace of mind to any employer and especially foreign employers operating in Denmark.

All-inclusive Danish payroll service:

• Monthly payroll processing
• Issuing of payslips in Danish (and in English as a special request)
• Monthly reporting to the Danish tax authorities
• Annual reporting of employer and employee payroll activity
• Compilation and distribution of employee annual tax statements
• Responding to payroll-related correspondence from the Danish tax authorities (in Danish where necessary)

Supplemental services available:

• Registration of client company as an employer in Denmark (required to pay employees)
• Assistance with registration of employees for Danish CVR tax numbers
• Individual Danish tax return service for employees
• A1 applications for employees where appropriate and applicable
• Advice and guidance on tax-related subjects for both the client and employees
• Translation services from Danish to English

We are able to provide bespoke packages of services tailored to the needs of each client

Contact us for a consultation and to obtain a quotation.

Contractor payroll service
This payroll service is provided to individuals, recruitment companies and small businesses who wish to relinquish the responsibility of being an employer for work carried out in Denmark or within Danish territories.

In this case Binks Overseas becomes the employer and a sub-contractor to the client to provide the services of the individual contractor. This is attractive for the client as:

• The client company relinquishes employer responsibility for payroll processing and payment of taxes to the Danish tax authority.
• The client saves administrative time and labour costs of administering a payroll in Denmark.
• The client is not required to register as an employer in Denmark as Binks Overseas is the employer and is registered as such.
• In some cases it is the individual contractor who pays the fees to Binks Overseas and so the client reduces further the costs of operating in Denmark.

All that the client needs to provide is a sub-contract for each individual it wishes to work in Denmark.

Please contact us for more details and a quotation.