According to the Danish Withholding Tax Act (Kildeskatteloven), the foreign company with a permanent establishment in Denmark is obliged to have salary etc. paid through an authorised legal representative domiciled in Denmark, as the company is not legally domiciled in the EU, or in a country with which Denmark has an agreement on mutual collection assistance modelled on the EU rules (i.e. the Faroe Islands, Greenland, Iceland and Norway).
The authorised legal representative must withhold A-tax and labour market contributions in accordance with section 46(4) of the Danish Withholding Tax Act (Kildeskatteloven) and section 7 of the Danish Labour Market Contributions Act (Arbejdsmarkedsbidragsloven).
The authorised legal representative is liable for the payment of A-tax and labour market contributions.
