Ruling on Taxation of SAFE

Published 6 November 2020

PrintCategory: Taxation / VAT

On 23 October 2020, the Danish Tax Agency published a ruling from the Danish National Tax Board regarding taxation of a SAFE (Simple Agreement for Future Equity) issuable by a US company.

According to the ruling, the SAFE should be taxed in accordance with Section 4(f) of the Danish Central Government Taxation Act, which governs the taxation of lottery, other gambling and betting.

The ruling can be found here (in Danish)

Tags:  Cross-BorderVenture Capital


Also tagged ‘Cross-Border’

10 May 2021ArticlesInvestors Regulation

New Danish Act on Screening of Foreign Direct Investments

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
23 Aug 2019AIFsArticlesEuVECA

Pre-marketing of AIFs and EuVECA Funds

Following the recent amendments to the AIFM Directive (“AIFMD”) and the EuVECA Regulation, this article discusses the new rules on pre-marketing covering both AIF and EuVECA Funds.

AIFMDCross-BorderPre-Marketing
21 Jun 2019AIFsEuVECA

Council Approves Regulation on Cross-Border Distribution of AIFs

On 14 June 2019 the Council adopted the new regulation on facilitating cross-border distributions of AIFs.

Cross-BorderMarketingPre-MarketingVenture Capital
21 Jun 2019AIFsEuVECA

New Directive to Amend AIFMD has been Adopted

On 14 June 2019 the Council adopted the new directive amending i.a. the Alternative Investment Fund Managers Directive (AIFMD).

AIFMDCross-BorderMarketingPre-MarketingRetail InvestorsVenture Capital
23 May 2019AIFs

EU Parliament Approves Final Compromise to Amend AIFMD

Highlights include a definition of pre-marketing, rules on de-notification in countries with no investor interests and rules on facilities made available to retail investors.

AIFMDCross-BorderMarketingPre-MarketingRetail Investors
16 Apr 2019AIFsArticlesEuVECA

Cross-Border Distribution of Collective Investments Undertakings

On 16 April 2019, the European Parliament adopted the European Commission's initiatives to improve the efficiency of cross-border distribution of Alternative Investment Funds (AIFs) and EuVECA funds by increasing transparency and harmonising diverging national rules.

AIFMDCross-BorderMarketingPre-MarketingRetail InvestorsVenture Capital
16 Apr 2019AIFsEuVECA

EU Parliament Approves Final Compromise on Proposed Regulation on Cross-Border Distribution of AIFs

The new regulation establishes uniform rules on i.a. fees and charges, and it amends the EuVECA regulation to include a pre-marketing definition.

Cross-BorderMarketingPre-Marketing

Other updates

14 Jun 2021AIFsInvestors RegulationUpdates

European Commission has Launched a Public Consultation on a Retail Investment Strategy

On 11 May 2021, the European Commission launched a public consultation on a retail investment strategy for Europe.

AIFMDMarketingPre-MarketingRetail Investors
21 May 2021Taxation / VATUpdates

Reclassification of Tax Transparent Entities

On 19 and 20 April 2021, the Danish tax authorities published two rulings from the Tax Assessment Council (in Danish: Skatterådet) regarding reclassification of tax transparent entities

Danish Regulation
10 May 2021Impact and ESGUpdates

Consultation on Sustainable Corporate Governance Initiative is Completed

On 25 October 2020, the European Commission launched a public consultation on a possible EU-level regulatory initiative dedicated to foster long-term sustainable and responsible corporate behavior.

Sustainability
8 Mar 2021AIFsUpdates

ESA Publishes Joint Supervisory Statement on the Interpretation on Fund Managers’ ESG Disclosure Obligations

From 10 March 2021, fund managers are required to make certain ESG disclosures available on their website and in their pre-contractual disclosures to investors.

AIFMDComplianceDisclosure RequirementsSustainability
5 Jan 2021AIFsUpdates

ESMA Consults on Guidelines for Marketing Communications for Cross Border Distributions of AIFs

ESMA has launched a consultation on guidelines on marketing communications under the cross border distribution of funds regulation.

AIFMD
22 Dec 2020Taxation / VATUpdates

New Employee Share Scheme for Small New Companies (Startups)

As of 1 January 2021 a new employee share scheme applies. This new employee scheme entails that certain new and small companies can award employees with shares, options and warrants up to 50% of the employee's annual salary while the employee will be subject to taxation as share income (up to 42% taxation) instead of personal income (up to approx. 55% taxation).