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Denmark introduces stricter requirements for foreign service providers
On 28 November 2024, the Danish parliament adopted a proposal to amend the Act on Posting of Workers and the Aliens Act to implement stricter documentation requirements for foreign service providers and a requirement to demonstrate identification documents upon request. Specific provisions of the proposal will go into effect on 1 January 2025, with others relating to the enhanced documentation requirements going into effect on 1 January 2026. This change is being introduced via an amendment to the Act on Posting of Workers and the Aliens Act and impacts both local employees in Denmark and employees of companies that, or self-employed individuals who, temporarily provide services in Denmark (i.e., foreign service providers).
A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.