This tax website has been designed to inform you about news of special interest to you as a foreign investor.

The information given is not exhaustive and, unless otherwise indicated, it is based on conditions existing at July 2003. Readers are advised to consult with professionals, such as independent accountants, legal counsel, and investment bankers, before taking any formal action. Our professionals would be pleased to discuss specific problems with you.

Denmark's corporate tax rate for 2003 is 30%, unchanged from 2001.
The progressive reduction of the corporate tax rate in Denmark - from 50% in 1990 to 30% in 2001 - significantly improves business conditions. The 30% Danish rate is below the average corporate income tax for industrialised nations.

On request a Danish company may be taxed jointly with wholly owned subsidiaries in Denmark or abroad. Under joint taxation, losses of one company may be offset against profits of other companies. Taxes paid abroad by a foreign subsidiary may be credited against Danish taxes.

In the section Holding company the Danish holding regime is explained which makes it possible for a group of companies to route dividends into Denmark without being liable for Danish taxation and again out of Denmark without imposing withholding tax.

The thin capitalisation rule is explained in the section Thin capitalisation. The new legislation introduces limitations on the deduction of interest in situations where debt:equity exceeds the ratio of 4:1.

The section Transfer pricing explains the new transfer pricing legislation from 1998, when companies became subject to tax return reporting requirements on cross-border transactions just as they must prepare and retain written documentation showing that cross-border transactions are made on an arm's length basis.

This year the international publication, Intenational Tax Review, has named Deloitte Skat Denmark's Leading Tax Adviser.

In-house tax experts and CFOs at leading organisations were asked which tax adviser they would rate the best within the 7 categories:

• Tax Planning,
• Tax Transactional,
• M&S,
• Transfer Pricing,
• Capital Markets,
• Cross-border Structuring, 
• Indirect Taxes.

Deloitte Skat was named first in 7 out of 7. Our tax experts Erik Jensen, Knud Legaard, Søren Reinhold Andersen and Bo Sponholtz were named as top advisers.

Would you like to know more?
If you would like further information please contact Bo Sponholtz at our Copenhagen office by hone +45 33 76 33 69 or fax +45 33 76 39 92.