On 2 September 2024, the Danish Tax Board issued a binding ruling concluding that a Swedish company had established a permanent establishment (PE) in Denmark due to its Chief Executive Officer’s (CEO) working partially from home in Denmark. The CEO, a Danish resident, works from a home office in Denmark 40% of the time, with the remaining 60% spent at the company’s offices in Sweden. The Danish Tax Board confirmed that the company’s management seat remains in Sweden, but concluded that the company had a PE in Denmark, primarily due to the CEO’s significant influence on daily management decisions, which are partly made from Denmark.
Source Orbitax/EY
