Totalization Agreements Denmark
The United States has agreements with several nations, the so-called totalization conventions, in order to avoid double taxation of income in relation to social contributions. These agreements must be taken into account in determining whether a foreigner is subject to the U.S. Social Security Tax/Medicare or whether a U.S. citizen or resident alien is subject to the social security taxes of a foreign country. However, if you are invited by the authorities of your country of residence to provide proof of the social security obligation in Denmark, you must send the questionnaire to the Lifeindenmark.dk website regarding the determination of social security rights in Udbetaling Danmark (Denmark Payment Agency). Careful! All you have to do is do it if you are specifically asked. The EU Health Insurance Card is issued by your local service and you order it at Lifeindenmark.dk If you have any questions about international social security conventions, contact the Office of International Programmes of the Social Security Administration at 410-965-3322 or 410-965-7306. However, do not call these numbers if you want to inquire about a right to an individual benefit. Workers working in Denmark are compulsory members of the Danish social security system and are therefore required to pay social security (ATP) contributions amounting to 1,135,80 DKK per worker per year.
Employer contributions to Danish social security are about 8,000 to 10,000 DKK per employee per year. The exemption from the Danish social security system can be obtained if there is a totalisation agreement between Denmark and the country of origin or jurisdiction. This applies to both residents and non-residents. Denmark has social security agreements with the following countries: this agreement can be amended in the future by complementary agreements which, as soon as they come into force, will be considered an integral part of this agreement. These agreements can be concluded retroactively if they specify. Agreements mean that once you have approved your form, for example. B for the United States, you will continue to pay the pension for life and retain your right to a Danish pension. The form also exempts you from participating in legal social security plans in the United States. All agreements are different, but most of them deal only with the issue of the Danish right to the old age pension and the ATP pension. You can apply to be included in one of the above agreements by sending a form to Udbetaling Danmark (Denmark Payment Agency). Learn more about social security in the EU on Lifeindenmark.dk A list of countries with which the US currently has totalisation agreements and copies of these agreements can be accessed from international us social security agreements.
Expats who have left Denmark can opt for a gross tax of 32.84% (27 per cent flat-rate plus labour market contribution) on their cash compensation, the taxable value of the company car, telephone and operating insurance paid by the company. All other income, including other benefits, is taxed at normal rates. In most cases, foreigners need a residence and work permit before they can start working in Denmark. Or visit the US SSA in www.socialsecurity.gov/. Our website is a valuable resource for information on all social security programs.