Denmark Seeking To Modernize Labor Tax Rules
by Ulrika Lomas, Tax-News.com, Brussels
05 April 2019
On March 25, 2019, the Danish Tax Ministry announced that it is studying ways in which the tax system can be adapted to new forms of employment and ways of working, with an emphasis on technological developments.
In particular, the Government is attempting to identify income tax and value-added tax challenges for those workers who fall between the definitions of employed and self-employed persons. According to the Tax Ministry, there are around 300,000 people in Denmark who can be included in this third category of workers.
The ministry said that such workers face challenges with regards to fulfilling their income tax and VAT obligations, as well as administrative problems when attempting to correctly pay tax and VAT.
In addition to those starting up new businesses, people earning money from activities such as blogging and streaming content are often considered neither employed or self-employed for tax purposes, the ministry noted.
The Tax and Customs Administration has been tasked with submitting a report with recommendations on how such tax challenges can be overcome during 2019.
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