Denmark Tax Agency Clarifies Taxation of Foreign Trucking Services Under Withholding Tax Act

The Danish Customs and Tax Administration May 4 posted online Tax Council Binding Answer No. SKM2026.213.SR, clarifying the taxation of foreign trucking services under the Withholding Tax Act. The taxpayer, a Danish transport service provider, outsourced international road transport services to a foreign company in its group. The taxpayer inquired as to tax treatment under the Act. Upon review, the Tax Council found that: 1) road transport services were an integrated part of the taxpayer’s business because they were part of the core services; 2) the international transport tasks were considered separated to the foreign group company because it held ...