paying tax to denmark, uk worker offshore

[goldenbolls]

im going offshore soon to denmark, i am from uk and am currently working in holland ( no tax is being deducted from my wages whilst in holland , i do not know why ) though when we go offshore to denmark on oil rig we will be paying 36% tax !!! we have been told by even our own company we cannot claim this back . some worker recieved an email back from danish authorities also that we cannot claim this tax back.

can anyone shed any light on this ? thanks

[buildersmate]

You haven't provided enough information to provide a definitive answer, but it depends on your residency status and where your employer is based (i.e. the UK, Denmark or even elsewhere) and whether you bring any of your overseas earnings back to the UK.
Some of the answers you require can be solved by reading though this little lot - http://www.direct.gov...IntoTheUK/DG_10026136
It is not straightforward, and it may be worthwhile seeking professional advice if your employer cannot or will not help you to minimise your tax liability.

[goldenbolls]

i am a uk citizen, ive heard that my company sms offshore in holland pay our wages through ab bank in dubai ( that could be hearsay i dont know ) we are getting a 2 year contract as from next week when rig leaves holland to go into danish ( sector ) waters

[buildersmate]

I appreciated that you are a UK citizen - it is the country status of the company you work for, the length of time you are out of the UK that counts for HMRC (UK tax purposes). I cannot easily find out what happens at the Danish end but it sounds like because you will be in Danish territorial waters, the Danes seem to think that you need to pay income tax to them. As far as I know the UK has a double-taxation treaty with the UK - which means you can't get taxed twice - but if the Danish income tax rate is 36% (and it sounds like from your comments that it is) then you are obviously best trying to find a way to avoid your income being taxed at Danish rates. As I said in my original post - normally the employer is the best organisation to approach about this - since it is in their interests to help minimise the cost liability on their contractors (if only because it makes acquiring contractors to work for them easier). I don't suggest that you accept this contract without understanding the extent of the tax burden beforehand - otherwise you will get stuffed.