On 2 June 2023, the Danish parliament approved Bill L 124, which provides for the termination of the 1996 tax treaty with Russia. As previously reported, it has been determined that it is not in Denmark's interest to continue having a tax treaty with Russia. One of the main reasons is Russia's inclusion in the EU list of non-cooperative jurisdictions and Denmark's defensive measures in connection with the EU list, which may not be applied if Denmark maintains its tax treaty with Russia. Another consideration for the termination of the treaty is Russia's military invasion of Ukraine, which has resulted in a reduction of Danish business interests in Russia.

Bill L 124 will enter into force on 15 June 2023, after which the necessary notifications must be made. If the notifications are made by 30 June 2023, the termination of the treaty will be effective from 1 January 2024. Further updates on the termination of the treaty will be published once available.