Category Archives: Various

Criminal liability for omitted transfer pricing documentation

Denmark has since 1998 had a detailed Transfer Pricing legislation, which from its inception imposed a documentation obligation (TP-documentation) on larger groups of companies, transactions with tax heavens etc. The national legislation now appears in sections 37-52 of the Tax Control Act. The detailed requirements for TP documentation are set out in Executive Order no. […]

Application of the 15% rule when transferring commercial property

The benefits of being in business with property have now become even greater following the decision of the National Tax Court, which overturns the Tax Agency’s long-standing practice. Those covered by the rule can value and transfer real estate between close relatives at a price +/- 15% of the public property valuation. The rule allows […]

When is municipal commercial property tax to be paid?

In a judgment of 22 April 2022, the Supreme Court has concluded that the use of premises used for yoga classes was subject to the payment of tax on the use of the premises. The judgement helps to further define which use of property triggers the payment of municipal commercial property tax. The judgement presumably […]

Sale of shares followed by liquidation was not circumvention

In a new binding answer, the Danish Tax Council concluded that a sale of shares to its own holding company followed by a liquidation did not constitute circumvention of section 3 of the Danish Tax Assessment Act, as the questioner was resident in a DBO country. Section 3 of the Tax Assessment Act contains a […]

Mishandling should not be taxed as a shareholder loan under section 16E of the Danish Tax Act

In two new binding answers, the Danish Tax Council has found that transfers from the companies to the main shareholders should be recognised as erroneous transfers and not an illegal shareholder loan, as the transfers were made quickly. A shareholder loan is treated under tax law as a non-refundable withdrawal. This means that the loan […]

Supply of a VAT-free building with associated land or supply of a VATable building plot?

In a number of recent cases, the National Tax Tribunal has assessed whether VAT should be charged on supplies of immovable property. Firstly, there have been cases concerning supplies of buildings and land where the buildings were in their “old age”. Secondly, there have also been cases concerning supplies of “foundation land” with foundations constructed […]

Recommendations for a multi-year agreement for the tax system

The so-called expert committee chaired by Merete Eldrup, which was tasked with drafting a proposal for a multi-year agreement for the tax administration, has just presented its recommendations. The major administrative and control problems within the tax administration have given rise to a number of political initiatives since 2015. On the one hand, significant new […]

Are screens for working from home taxable for the employee?

During Covid-19, many employees have become accustomed to working from home. Working from home has opened up many opportunities for the future, and many have in this connection been provided with computer screens for working from home. The question is whether computer screens for use in the home office are considered a taxable personal benefit. […]

The National Tax Tribunal overrules the Danish Tax Agency’s practice regarding VAT on real estate

In a new decision, the National Tax Tribunal has ruled that real estate can be sold free of VAT, even though it was a condition of the purchase agreement that a sister company was to be responsible for the demolition and new construction of properties on the sold share of the property. The fact that […]

The intention of the purchase of a real estate property does not determine the VAT treatment

Two new decisions from the National Tax Tribunal on VAT on the sale of real estate emphasise that the buyer’s intention to fully or partially demolish an existing building cannot lead to the sale of the real estate being regarded as the sale of a building plot. If there is an old building on the […]