Contracting in DENMARK with WhiteNovember

Transcription

1 Contracting in DENMARK with WhiteNovember 1

2 Contents About us EU Residence Certificate Get a CPR Number Get a Tax Card The Danish and European Health Insurance Card Nemkonto Account NemID (Secure Login) Holidays Why White November International Contracting? Instructions for Employees Working in Finland

3 About us White November International Contracting (WNIC) work with international contractors across the EU/EEA and help each contractor to get better retention rates for the contracts they are working on, whilst being wholly compliant in their country of operation. White November International Contracting head office is based in Malta. Malta has an extremely attractive tax refund system approved by the EU. Local company, financial, and tax legislation are founded on UK law. From our head office in Malta, we are currently registered as employers and operate our solutions across the following countries within the EU/EEA: Norway Sweden Belgium Denmark France Ireland Germany Finland The Netherlands Luxembourg Czech Republic. 3

4 What to do when you first come to Denmark EU Residence Certificate As an EU citizen, you can freely enter Denmark and stay in Denmark for up to 3 months without an EU residence document (registration certificate). You can reside in Denmark for up to 6 months without a registration certificate. The periods of 3 and 6 months are calculated from your date of entry. Your stay in Denmark will most probably last more than 3 months, so you should apply for an EU residence document before the expiry of the three months. If you are a citizen of Finland, Iceland, Norway or Sweden, you will not need to apply for a registration certificate because as you have the right to reside in Denmark without authorization. If you are an EU citizen you should fill out the form OD1 Application for EU Resident document and take it to The State of Administration and submit your application or to receive an EU residence document (registration certificate). You must take your original passport or another valid travel document. Also, take along with you the following: A clear copy of your passport or other valid travel document. A color copy is preferred. 1 passport photograph (2 if you are not an EU citizen). Employment contract. Visa if applicable 4 4

5 The application must be submitted to either one of The State Administrations departments in Copenhagen, Aarhus, Aalborg, Odense, Aabenraa or Rønne depending where you will be residing in Denmark. See the link of contact details You can also apply at an International Citizen Service centre either in Copenhagen, Aarhus, Odense or Aalborg You may also apply via a Danish representation abroad. When you have received your EU residence document (registration certificate), you may contact the Citizen Services of your locality of residence in Denmark to get a civil registration number (CPR number) and a health security certificate. Thus, you need a EU residence document (registration certificate) to get a civil registration number. 5 5

6 Get a CPR Number CPR number (civil registration number) is known as a personal tax number. Depending on how long you intend to stay in Denmark, each person must have a personal registration number, which is called a CPR number. CPR stands for Central Person Register. To obtain a CPR number, you must contact your municipality s local Citizen Service Centre or International Citizen Service only available in Aalborg, Aarhus, Copenhagen and Odense please see link for address details You should bring along: Work and residence permit (if you are a citizen outside the EU/EEA, the Nordic region or Switzerland). Assignment/employment contract. Passport or personal ID. Proof of your address in Denmark (e.g., rental contract). You should also ask for a receipt of your notification and for your a personal (civil) registration number. The CPR number is important for any contact with the Danish authorities and especially in relation to tax and social security issues. 6 6

7 Get a tax card When you arrive in Denmark, you must immediately start paying tax on your income. The amount of tax you must pay depends on how much you earn. The tax deductions and allowances you are entitled to such as: certain pension scheme contributions, membership fees to a union or an unemployment fund, child support payments (set by the government in your home country and in agreement with your former spouse), interest payments on loans, expenses for transport (more than 24 km) between home and work. You can apply for a tax card online or by completing form no If you have completed the form in full and attached or enclosed the documents required, SKAT will create a preliminary income assessment (forskudsopgørelse) and a tax card for you within two weeks. The tax card is part of your preliminary income assessment. You can see your tax card on the first page of the preliminary income assessment. The tax card contains information about your withholding rate, your monthly tax-free allowances and deductions. You can also apply for a tax card at one of the International Citizen Service Centre s. You will then need to bring: - Form you may complete the form beforehand or at the ICS center. - ID with photo, such as a passport or ID card. - Marriage certificate if you are married (family certificate if you are a Swedish citizen). - Work permit if you are a citizen from outside the EU, outside Switzerland or outside the Nordic countries. - Employment contract (signed by your employer). 7 7

8 The Danish and European Health Insurance Card Danish Health Insurance Scheme Once you have informed the municipal authorities of your arrival in Denmark and have received your CPR number, you are automatically covered by national health insurance. You can then register with a general practitioner which you will be asked to choose a General Practitioner from a list provided by your respective locality and they will provide you with an application to complete for you to receive yellow health insurance card. The health insurance card will entitle you to the services offered under the national health insurance scheme. Approximately two weeks after you have registered, your national health insurance card will be sent to your Danish address. The card will show your credentials and the name and address of your doctor. It is advisable always to keep this card with you as it is required whenever you need to see a doctor, a dentist or go to hospital etc. Citizens of Nordic countries as well as UK citizens are covered by the Danish public health insurance scheme upon arrival in Denmark. EU/EEA nationals must have been covered by the public health insurance scheme in their respective country to be covered in Denmark, and the E104 form must be presented when registering with the Danish authorities. All other nationals, as well as newcomers who either had private health insurance or were not covered by public health insurance in their home country, are not covered by the Danish public health insurance scheme until six weeks after they have registered. Any medical treatment required within this initial six-week period must be paid for independently, so it is probably worth taking out a short-term private insurance policy in the meantime. 8 8

9 European Health Insurance Card Citizens of the EU who have a valid EHIC card are covered for most medical treatment in Denmark. However, if you contracted to work in Denmark for more than a year, you will need to complete a E106 form as well as your EHIC card. If you do not have this card it is advised to apply for one. You can apply by using the following link You can use either this card or the yellow health insurance card whilst in Denmark. Do take note that you are covered differently when using the EHIC card as it depends on where you are travelling. 9 9

10 Nemkonto Account (Easy Account) All individuals and businesses in Denmark are required to have a free NemKonto (Easy Account) for payments from the public sector. A NemKonto is your normal bank account which you already have, and you assign it as your NemKonto. All payments from public authorities will be transferred directly to this account. NemKonto is part of a large project to digitize the Danish public sector. There are numerous advantages with NemKonto for you as a residence in Denmark: You no longer need to go to the bank to cash checks from public institutions. You can assign or change your account information at one place. Public offices save time and money by avoiding payments in cash or check. Public authorities will use less time updating account information. How to open an account All you need to decide is which of your existing accounts (Danish accounts) you wish to use as your NemKonto. If wish to assign a foreign bank account as your NemKonto you can use the registration form which is Attachment 1 at the end of this document. You will need to send the form to the address provided in the form. (NemKonto Support, Lauritzens Plads 1, 9000 Aalborg, Denmark). You can do this in one of the following ways: Contact your bank and inform them which account to assign as your NemKonto. Assign an account number yourself at NemKonto selvbetjening. You can only do this if you have a NemID or a digital signature. Change your NemKonto in your home banking system 90 pct. of the Danish banks offer this service. 10

11 Nem ID (Secure Login) NemID is a common secure login on the Internet, whether you are doing your online banking, finding out information from the public authorities or engaging with one of the many businesses that use NemID. You can use NemID for public authorities self-service, online banking as well as a great number of private websites. See a. You can obtain NemID when: You have a Danish CPR number. You are able to meet the ID requirements. You need not be a Danish national to obtain NemID if you have a CPR number and valid ID. It is important that you have valid ID. There are several ways to obtain NemID. You can: Go to your local citizen services centre. Online banking. Order NemID online service (requires Danish passport or Danish Driver's licence). Obtain NemID via citizen services You can obtain NemID through personal appearance at a citizen service centre. Please see for address information. 11

12 Holidays As a rule, you must take your holiday in the right holiday year to claim your holiday allowance. You must have earned holiday rights before you can take holiday/vacation with full salary pay when you have your vacation. Per Danish vacation law, you are entitled to 2,08 day per month during your employment, in total you are entitled to 25 days per year. Holidays are divided into two periods: 1: earning period (1/1 31/12 first year of employment), 2: using period (from 01. may in second year of employment, to 30. April in third year of employment) If you apply for your vacation leave through us you will need to send us notification and your time sheet. FerieKonto will organize and disburse all your holiday allowance if you have a NemKonto account. You can always see the holiday allowance you have earned on your NemKonto self-service page. In March of each year, before the holiday year begins, you will get a holiday letter from Feriepenge (holiday pay) info by Digital Post. The letter gives you an indication of your holiday allowance no matter which party is to disburse it. If you are not registered for Digital Post, you will get the letter by regular post. Your employer will calculate your holiday allowance. In general, you will accrue 12.5% of your salary in holiday allowances. This complies with 2.08 days of holiday for every month that you are employed. If your employment is shorter than one month or if there are days during a month that you do not accrue entitlement to holiday, you accrue 0.07 days of holiday for each day you are employed

13 Holiday allowance from FerieKonto FerieKonto administrates holiday allowance for all employees that are not included in a collective holiday agreement. Please note that you can only have your allowances paid into a bank account in your own name. You cannot have the allowance paid into another person's account. Also note that there is a DKK 70 administration fee from the amount paid into your foreign account. Your own bank can also charge for the transaction. Amounts of less than DKK 100 will only be paid into a Danish bank account. FerieKonto is unable to transfer the sum of DKK 100 to a foreign bank account it is also unable to issue the amount as a cheque. When you are no longer registered with the Civil Registration System (CPR), no longer work for a Danish employer and do not receive public benefits from Denmark, you can have all your holiday allowance pay disbursed, even if you do not take your holiday. To claim your holiday pay you can log onto your NEM login and claim it through there You must apply yourself to have your holiday pay disbursed within the sixmonth time frame of your last day of work for your Danish employer. If you have stopped working in Denmark more than 6 months ago, you have to take you holiday in order to receive your holiday allowance. 13

14 Why White November International Contracting? White November Group and its sister companies have been in operation for over a decade. White November is a management consultancy specialising in bespoke corporate and tax efficient solutions for high net worth individuals and small companies. In 2011, White November was approached by a group of specialist contractors whom were based in Scandinavia for a global oil and gas entity. These contractors were high earners and felt uncomfortable with the nature of solutions being offered by traditional umbrella companies both in terms of compliance and reputations. This same group of contractors approached WN with a mandate to provide a bespoke solution that allowed them to work in Scandinavia in a tax compliant and fully insured manner, while optimising their retention of remuneration. It was out of this mandate that our Partnership Solution was created. In servicing these contractors our researched showed that the European Contracting industry was poorly serviced. Many competitors were offering opaque solutions which were not tax compliant for the contractors and reputationally risky for agencies and end clients. We noticed a market gap for a high end provider to provide compliant solutions that are tax efficient and offer long term orientated options and strategies to contractors. Following much demand and success, White November s International Contracting (WNIC) became a permanent division within the group. While initially only serving the top 5% of earners within the Scandinavian contracting market, WNIC has expanded to provide solutions in ten European jurisdictions and now offers both solutions for contractors at all levels of remuneration. Disclaimer: Whilst every effort has been made to ensure that the details contained herein are correct and reflect the conditions at the time of publishing (December 2016), it does not constitute legal or professional advice. White November International Contracting does not accept responsibility, legal or otherwise, for any errors or omissions. 14

15 Tel.: Web: Malta Office Level 8, The Plaza Commercial Centre Bisazza Street SLM1640 Sliema Malta 15