Higher Corporate Tax Rate for Danish Financial Companies and Deductibility Cap on Salary Expenses
Published 28 April 2022
Category: Taxation / VAT
On 6 April 2022, the Danish Government presented a proposal for an amendment of, among others, the Danish Corporation Tax Act.
According to the proposal, the corporate tax rate applicable to financial companies will be increased from 22 percent to 25.2 percent in 2023 and 26 percent in 2024. The tax increase will apply to authorized managers of alternative investment funds, i.e. to companies exercising activities as managers of alternative investment funds, which require an authorization from the Danish Financial Supervisory Authority (as opposed to a mere registration).
In addition, it is proposed that a cap is set on deductions for salaries and wage accessories. The cap will be fixed at a basic amount corresponding to approx. 7.5 million DKK in 2022. The cap will apply per person per income year and is proposed to apply at group level. Certain types of stock options and warrants (purchase and subscription rights for shares) are also proposed to be covered by the deductibility cap.
Next step: If enacted, the proposal is expected to enter into force on 1 January 2023.
The proposal is available (in Danish) here.
Also tagged ‘Danish Regulation’
The Commission has postponed the date of application of the detailed regulatory technical standards (RTS) under the ESG Disclosure Regulation and the Taxonomy Regulation by six months from 1 January 2022 to 1 July 2022.ComplianceCross-BorderDanish Regulation
The Commission has answered a number of questions from the European Supervisory Authorities (ESAs) regarding the ESG Disclosure Regulation.ComplianceCross-BorderDanish Regulation
The new act on control of foreign direct investments (the “Act”) was adopted on 4th May 2021. The Act introduces a new framework for government screening of foreign investments and certain types of agreements with Danish companies.ComplianceCross-BorderDanish Regulation
On 21 August 2020, the Danish Ministry of Taxation published for consultation a draft proposal according to which previously adopted amendments to the Danish Tax Assessment Act concerning the tax treatment of equity compensation to employees in “start-ups” will enter into force on 1 January 2021.Danish RegulationVenture Capital
Entry into Force: Guidance Signal Excluding Certain Alternative Investment Funds from VAT Exemption on Management Fees
On 7 May 2020, a guidance signal which excludes certain alternative investment funds from VAT exemption on management fees entered into force.Danish RegulationManagement Remuneration
Guidance Signal Excluding Certain Alternative Investment Funds from VAT Exemption on Management Fees is Adopted by the Danish Tax Agency
On 7 November 2019 the Danish Tax Agency presented its guidance signal concerning the rules on VAT exemption for management fees for management of investment undertakings.Danish RegulationManagement Remuneration
Proposal to Increase Certain Requirements for Managers under the AIFM and AML Act Published for Consultation
On 28 August 2019 the Danish FSA (in Danish: Finanstilsynet) published for consultation a draft proposal to change, among others, the Danish AIFM Act and the Danish AML Act.ComplianceDanish RegulationKYC / AMLWhistleblowing
Transfer of personal data from Denmark to (private) organisations in Japan that are subject to the APPI will not require prior approval from the DPA.ComplianceDanish RegulationGDPR
On 11 June 2019, the Danish Data Protection Agency ("DPA") has reported a Danish furniture company to the Danish police for not deleting information on approx. 385,000 customers.ComplianceDanish RegulationGDPR
On 2 May 2019, the Danish Parliament adopted amendments to the Danish Companies Act, which implements part of the 5th EU Anti-Money Laundering Directive.Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AML
On 25 March 2019, the Danish Data Protection Agency submitted a notice to the Danish police regarding a Danish taxi company’s violation of GDPR for storage of customer phone numbers.ComplianceDanish RegulationGDPR
On 13 March 2019, the Danish Government presented a proposal for an amendment of various acts including the Danish Companies Act which implements part of the 5th EU Anti-Money Laundering Directive concerning the registration of ultimate beneficial owners.Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AML
On 8 March 2019, the Danish Tax Agency published a draft guidance signal for public hearing. If implemented, the guidance signal will exclude certain alternative investment funds from VAT exemption on management fees.Danish RegulationManagement Remuneration
On 27 February 2019, the Danish Government presented a proposal for an amendment of the Danish AIFM Act giving the Danish Financial Supervisory Authority competence to enforce the PRIIPs regulation.ComplianceDanish RegulationDisclosure RequirementsKID / PRIIPSWhistleblowing
The CJEU judgments will likely have a big impact on international group structures and will also contribute to the interpretation of the anti-abuse principles of EU law and the "beneficial owner" concept.Beneficial OwnershipDanish Regulation
The European Parliament has passed the Corporate Sustainability Reporting Directive (“CSRD”). CSRD replaces the Non-Financial Reporting Directive (“NFRD”), and introduces higher requirements of more detailed reporting, and a mandatory EU sustainability reporting standard.ComplianceSustainability
The European Commission has proposed a prohibition on making products made with forced labour available on the EU market as well as exporting such products from EU. The proposal shall be seen in connection with the proposal for a Directive on Corporate Sustainability Due Diligence (CSDD) adopted by the European Commission in February.
Invest Europe has published a set of ESG reporting guidelines with the aim of providing user-friendly and advanced guidelines on sustainability reporting within the European private capital sector.Sustainability
The Swedish Finansinspektionen has reviewed 30 Swedish-registered UCITS- and special funds with sustainable investment as their goal (SFDR article 9 funds). Finansinspektionen analyzed how fund managers met the requirements for providing sustainability-related information to investors.Sustainability
On 6 September 2021, The EU Commission amended the EU delegated regulation for the presentation of the Key Information Document (“KID”).KID / PRIIPS
Invest Europe has published a comprehensive members guide on EU ESG reporting requirements for fund managers to clarify grey areas that exist around the day-to-day application of the regulation.ComplianceDisclosure RequirementsSustainability