Denmark Tax Agency Clarifies Increase in A-Tax, Labor Market Contributions on Payments to Subcontractors

The Danish Customs and Tax Administration Dec. 10 posted online City Court Decision No. SKM2025.706.BR, clarifying the increase in A-tax and labor market contributions on payments to subcontractors. The taxpayer, a company, made payments to various subcontractors, claiming such payments were for genuine services. The Tax Agency argued that the invoices were fictitious, that the subcontractors couldn’t have performed the work, and that the payments were unreported wages to employees, justifying increased A-tax and labor market contributions. On appeal, the City Court found that: 1) the taxpayer failed to prove that the subcontractors performed the work; 2) the lack of ...