The Danish government has launched a public consultation on amendments to draft bill L 89, which provides for the amendment of existing controlled foreign company (CFC) rules to comply with the EU Anti-Tax Avoidance Directive (ATAD). The government has consulted on and submitted multiple drafts and amendments in parliament for the implementation of ATAT-compliant CFC rules, but the implementation of has been delayed several times due to various concerns. The latest draft amendment provides for a partial substance test in relation to the inclusion of other income from intangible assets as CFC income.
The partial substance test provides the following:
Following the consultation, the amended draft bill L 89 is scheduled to be discussed in parliament on 27 May 2021, with the final vote to be held on 3 June 2021. The planned 1 January 2021 effective date of the draft bill is not changed with the proposed amendments.