General rules for cross-border workers

When you calculate the 75% of your total income, you include income from Denmark subject to limited tax liability (when Denmark has the right of taxation). This means salary, pensions, early retirement benefits, sickness benefits, unemployment benefits, the state education grant (SU), income from self-employment or similar. You subtract any deductible expenses you have incurred in order to receive this income, union membership fees, deduction for transport between home and work or travelling expenses, for example.

Generally, all income is included in your total (global) income. This means that income earned both in Denmark and abroad irrespective of the type of income, interest, dividends, royalties and real property, for example, is included. This applies also if Denmark has no right to tax the income according to a double taxation agreement.

Please see section C.F.5.3 of our Danish-language legal guide for further about how to calculate the 75% of your total income.

You have 2 options if you're subject to limited tax liability or if you have dual residence:

• Limited tax liability/dual residency and not taxed according to the rules for cross-border workers

• Limited tax liability/dual residency and taxed according to the rules for cross-border workers

See examples (in Danish) of extending the right of deduction and other differences if you apply the cross-border worker rules.

If you want to be taxed according to the rules for cross-border workers, you have to make that decision each year you want to apply the rule as the information is relevant for your preliminary income assessment (forskudsopgørelsen) and your tax assessment notice (årsopgørelsen). You need to make your choice for an income year by 1 July in the following income year. You can change your mind about choosing to be taxed according to the cross-border worker rules until 30 June in the second calendar year after the end of the relevant income year. You need to state that you want to be taxed according to the rules for cross-border workers in your preliminary income assessment and/or tax assessment notice.

If you want to state that you choose to be taxed according to the rules for cross-border workers in your preliminary income assessment, you should contact us on (+45) 72 22 28 92 or send an email by logging on at skat.dk.

In your tax assessment notice, you need to enter the relevant information under Change your tax assessment notice/tax return once you have logged on at skat.dk.

If there is no self-service option in E-tax  for you, you need to complete the following 2 forms as you're subject to limited tax liability;

• form 04.009 - Tax return for taxpayers with limited tax liability

• form 04.031 - Supplement to tax return for taxpayers with limited tax liability

Dual residents need to complete the following forms:  

• form 04.003 - Extended tax return

• form 04.032 - Supplement to tax return for taxpayers with full tax liability

It is stated on the forms 04.031 and 04.032 if you need to complete and submit other special forms.