Daily Tax Report: International

Denmark Tax Agency Explains Withholding Tax Obligations for Contracts With Independent Businesses

May 26, 2020, 5:00 AM

The Danish Customs and Tax Administration May 20 posted online a national tax tribunal decision clarifying the withholding tax obligations for contracts with independent businesses. A forging company entered into an agreement with an independent Polish company to hire forging workers. The forging company requested clarification as to whether the remuneration paid to the independent entity and its forging workers would be subject to withholding taxes and labor market contributions. The tax agency held that taxes must be withheld and labor market contributions paid from such remuneration. The tribunal upheld the decision, explaining that: 1) an employer-employee relationship exists, as...

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