16 May 2017 Danish Tax Board rules auxiliary work at premises of subcontractor's production site does not create a PE In a binding ruling dated April 25 (SKM2017.349.SR), the Danish Tax Board confirmed that personnel of a nonresident company, who for a period 18 months did oversight and supervision of the work carried out by a subcontractor in Denmark, did not create a permanent establishment (PE) for the foreign company. The ruling is somewhat contrary to the narrow core-business definition set forth by the Tax Board in previous rulings, which may be due to the limited value of the subcontract. As such, this ruling has helped define what activities can be considered as auxiliary to the core business of foreign companies with personnel working in Denmark. Document ID: 2017-0797 |
