16 October 2020
Denmark has published a draft bill for consultation on proposals meant to align the tax treatment of Danish and Foreign associations and non-profits in accordance with EU Law. It is proposed that both Danish and foreign associations be taxed on income from dividends, interest on controlled debt, and royalties, and that Danish and foreign non-profit associations be exempt from tax on dividends. In this way, there will be no difference between the tax treatment of Danish and foreign associations and non-profits.
In addition, it is proposed that Danish investment institutions subject to minimum taxation will be subject to dividend tax at a rate of 15% since foreign investment institutions are typically subject to 15% dividend tax. This is also meant to align the tax treatment in accordance with EU law.
The deadline for comments is 13 November 2020.
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