22 April 2021
The Danish Ministry of Taxation has issued a release announcing that parliament has approved Bill L 150, which provides for the introduction of new anti-avoidance rules (defensive measures) based on the EU list of non-cooperative jurisdictions. This includes:
The deduction restriction or increased withholding tax would not apply, however, if the relevant jurisdiction is an EU/EEA Member State or has a tax treaty with Denmark or, with respect to dividend payments, the person liable for withholding proves that the beneficial owner is domiciled in a jurisdiction that is an EU/EEA Member State or has a tax treaty with Denmark.
A list of specific non-cooperative jurisdictions for the purpose of the rules is provided as part of the bill, which has been updated based on the latest EU list of non-cooperative jurisdictions, including American Samoa, Anguilla, Dominica, Fiji, Guam, Palau, Panama, Samoa, Seychelles, U.S. Virgin Islands, and Vanuatu.
Note, Trinidad and Tobago is not included in the list, despite being listed by the EU, because Denmark currently has a tax treaty with the country. The bill approving the termination of the treaty was also approved on 20 April 2021, with an expected effective termination date of 1 January 2022. Once the termination process is finalized, the list for the defensive measures will be amended to include Trinidad and Tobago.
Although the Ministry release states that the measure will enter into force on 1 May 2021, the final approved version of the bill retains an entry into force date of 1 July 2021. Further confirmation of the entry into force date will be published once available.
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