Q&A about self-certification and tax liability abroad
If you have received a self-certification form regarding your tax liability from us, you may have some questions. Here are a number of questions and answers about the certification form, tax liability abroad and the underlying legislation.
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What does it mean to be fully tax liable?
Being fully tax liable in a country means that you are liable to pay tax in that country on your total income in Denmark and abroad. Generally, you are fully tax liable in the country in which you live or stay for more than 183 days out of a 12-month period – this is also called tax residency. -
What does being subject to limited tax liability mean – and should I indicate it on the certification form?
On the certification form, you need to list only the countries in which you are fully tax liable – and not those in which you have limited tax liability. You are subject to limited tax liability in a country if, for example, you have an income in the country but do not live there. In that case, you will be fully tax liable in another country. -
I have no income – am I liable to pay tax anywhere at all?
Your tax liability does not depend on whether you actually have an income. Equally, it does not always mean that you actually have to pay tax. Irrespective of whether or not you have an income, you are considered to be fully tax liable in the country in which you live. -
I have a holiday home abroad and pay land tax there. Should I indicate this on the certification form?
If you own a property in a country but do not live there permanently, you are usually subject only to limited tax liability in that country and have to pay only land tax there. As a general rule, you should therefore not list the country on the certification form. However, the tax rules vary from one country to another, so you need to contact a tax adviser or the local tax authorities to find out what applies to you. -
I have some foreign investments on which withholding tax is payable. Do I need to indicate where I have the investments?
No, you need to indicate only the countries in which you are fully tax liable – that is, the countries in which you must pay tax on your total income. -
Why do I have to complete the self-certification form, and what happens when I have done so?
Once you have completed the certification form, we can report correct information about where you are fully tax liable. If you indicate that you are fully tax liable outside Denmark, we are obliged to pass this information on to the tax authorities along with information about your credit balances and income in accounts subject to the reporting requirement, including dividends, interest income and sales proceeds. -
What happens if I do not complete the certification form?
If we do not receive the completed self-certification form from you, we will have to rely on our existing information and report to the Danish tax authorities that you may be liable to pay tax outside Denmark. -
What happens if I provide incorrect information on the certification form?
If we have reason to believe that you have not completed the certification form correctly, we will contact you to clarify the matter. -
What information will you give to the tax authorities once I have completed the certification form?
If you indicate that you are fully tax liable outside Denmark, we are obliged to pass this information on to the tax authorities along with information about your credit balances and income in accounts subject to the reporting requirement, including dividends, interest income and income from sales. -
I have previously stated that I am fully tax liable abroad. This is no longer the case, so what should I do?
If you have previously informed us that you were fully tax liable abroad, but this is no longer the case, you must send a self-certification form to us specifying the country in which you are now fully tax liable. -
What is a TIN?
TIN is an abbreviation for ‘Taxpayer Identification Number’, and is a foreign taxpayer identification number. If, for example, you are fully tax liable in the US and need a US taxpayer identification number, you must contact the US tax authorities, the Internal Revenue Service. -
Where can I find information about the local equivalent of the TIN in my country?
If you need information about the taxpayer identification number in your country, please contact a tax adviser or read the taxpayer identification number section on the OECD’s CRS portal. -
What are the rules underlying the requirement for self-certification?
There are two types of rules underlying the requirement for self-certification. These are the FATCA (Foreign Account Tax Compliance Act) rules, which are designed to prevent tax evasion in the US, and the CRS (Common Reporting Standard) rules, which aim to prevent international tax evasion. -
What do the FATCA and CRS rules mean in practice?
All banks in Denmark must comply with the rules. The banks have different methods of obtaining information from customers to clarify tax liability, and the self-certification form may therefore differ from one bank to another. We ask our customers where they are fully tax liable and ask them to provide their foreign taxpayer identification number (TIN).
Every year in May, we report customers who have been identified as being liable to pay tax outside Denmark to the tax authorities. The same applies to customers who do not complete the self-certification form and about whom we have information that causes us to believe that they may be liable to pay tax outside Denmark. Our reporting includes information on credit balances and income in accounts covered by the reporting requirement. -
I am fully tax liable abroad. How do the FATCA and CRS rules affect me?
You must complete the certification form so we can report correct information about where you are fully tax liable. We are obliged to provide this information to the tax authorities along with information about your credit balances and income in accounts subject to the reporting requirement, including dividends, interest income and sales proceeds. -
My child is fully tax liable abroad. How do the FATCA and CRS rules affect my child?
Minors are not exempt from reporting, so if your child is fully tax liable abroad and is a customer with us, we need the same information about your child as we need about you.
