Spørgsmål: Skatt on "Enskilt företag i Sverige, freelance arbete (IT konsulter) i Danmark"
Hi, I am setting up a "Enskilt företag" in Sweden, and plan to provide freelance service to companies in Copenhagen B2B. Can you please advise which country I pay income tax? Below are some details: 1. My Enskilt Företag is only in Sweden. The company does not have any permanent office Denmark. 2. I will work as a freelancer for companies in Denmark with short-term projects (6-9 months). There will be agreement of the price (hourly rate) in advance. I will invoice the clients. I will perform the work at the clients' office. 3. I live in Sweden and will commute everyday over the bridge. Here are my questions: 1. As the owner of Enskilt Företag, which country should I pay income tax? 2. Am I personally subject to any employee tax in Denmark? My understanding is 'no' since the company form is "Enskilt Företag" and I am not an employee. (?) Thank you.
If you consultancy income is in fact income from self-employment / work of an independent nature it can only be taxed in Sveden because that's where you live. The exception is if the tax authorities assess that you have a fixed place in DK, which is available to you. This does not have to be an office, it can also be locations of a kind of permanent nature. I assume that you are in fact domiciled and have your vital interest in Sweden.
Make sure you have a proper consultancy contract, where it is stated that you are not under the instruction of the DK customer and that you work in own risk etc. otherwise your work risks to be classified as remuneration as an employee which makes it taxable in DK.