Tax & social security
Labour and employment law matters should not only be regarded in a labour and employment law perspective
There is an increasing need for taking into account a host of complex issues relating to tax law and social security law.
To address and resolve issues in the best possible way, it often proves vital to make a combined assessment of the labour and employment law aspects as well as the tax and social security law aspects instead of assessing the individual legal areas.
With regard to tax, we e.g. advise on non-pay benefits, share-based pay and other types of incentive pay, hiring-out of labour, foreign workers, expatriation and repatriation and setting up business in Denmark. We also represent employers in the National Tax Tribunal of Denmark and the ordinary courts.
As regards social security, we e.g. provide advice on the many factors impacting on whether an employee is covered by the social security system in Denmark or another country and on the contract framework required to avoid large costs for the employer in another country. Many employers do not have sufficient focus on this area.
We recently
- advised a number of enterprises on the numerous tax-related challenges relating to share-based pay schemes, including stock option plans as well as schemes involving Performance Share Units and Restricted Share Units.
- assisted private and public sector employers in cases instigated by the Danish tax authorities regarding incorrect handling of employers’ reporting and withholding obligations, including with regard to the use of flexible remuneration packages and payment of tax-free mileage and travel allowances
- advised companies on the potential social security law-related implications of employees having sideline activities in other countries, including in relation to employees with directorships in foreign group companies and employees performing sideline activities at universities abroad.
- successfully represented a Scandinavian group in a case before the National Tax Board of Denmark on the right to deduction for compensation awarded under the Danish Anti-Discrimination Act
- advised a company in the offshore industry on social security in relation to employees working on the continental shelves of different EU countries.
- advised an air transport company on a number of social security issues for employees resident in Denmark or abroad, including with regard to demands for employer contributions to Swedish social security
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Information about Tax & social security
Kampen om skatteefterbetalingskravet
En håndboldklub blev dømt til at kompensere en spiller for det efterbetalingskrav i skat, som spilleren skulle betale, da spilleren ikke som forventet kunne beskattes under forskerskatteordningen under sit ansættelsesforhold hos klubben.
Registration of working hours – changes to the Executive Order on Rest Periods etc. submitted for consultation
Draft amendments to the Executive Order on Rest Periods and the Executive Order on Systematic Working Environment Work have been submitted for consultation. Among other things, it is proposed to align the exemption for the so-called self-organisers.
Extended leave for twin parents – bill adopted
The Parliament has adopted the bill implementing the political agreement on 13 weeks of additional leave with parental benefits for twin parents and adoptive parents.
In, or not in, fertility treatment?
An employee who was planning to undergo fertility treatment but had not yet started the treatment was not covered by the special protection against dismissal in the Equal Treatment Act.
No collective agreement, no shop steward – judgment by the Supreme Court
The Supreme Court recently upheld the Eastern High Court’s ruling establishing that a shop steward’s function ended at the time of a business transfer because the transferee had renounced the collective agreement.
Change in maternity leave terms gave rise to compensation
A pregnant employee was entitled to compensation under the Equal Treatment Act as a result of a material change to her maternity leave terms even though she had not left her position.
Adjustments to occupational schemes under the Aliens Act – bill submitted for consultation
A draft bill to simplify certain occupational schemes under the Aliens Act – including the requirement for a Danish bank account – has been sent out for consultation. The rules are expected to take effect on 1 July 2024.