Tax and VAT rules affecting Alternative Investment Funds (AIFs) or the AIF’s managers or investors.
Section 2C of the Danish Corporation Tax Act regards the situation where a Danish corporate entity which is considered transparent for Danish tax purposes is treated as a tax opaque entity in the jurisdiction(s) of its owner(s).
Venture CapitalAccording to two new advance tax rulings from the Danish Tax Assessment Council (SKM2025.46.SR and SKM2025.47.SR), under certain circumstances, investments directly in portfolio companies owned by a private equity or venture capital fund may also be subject to taxation under the carried interest taxation scheme.
Venture CapitalOn 19 December 2024, amendments to the Danish Corporation Tax Act, the Danish Capital Gains Tax Act and the Danish Personal Tax Act, as well as other Danish tax laws, were adopted by the Danish Parliament.
Venture CapitalAs set out in Pulse update on 13 June 2024, the Danish government has presented a proposal regarding entrepreneurship in Denmark, which includes initiatives aimed at creating better access to capital for startups, cutting the burden of red tape on business and certain relaxation of taxes.
Venture CapitalOn 12 June 2024, the Danish government presented a proposal regarding entrepreneurship in Denmark, which includes initiatives aimed at creating better access to capital for startups and certain relaxation of taxes.
Venture CapitalOn 3 October 2023, an advance tax ruling was published according to which the National Tax Board has decided that an investment product structured as a Simple Agreement for Future Equity (SAFE) was not a “subscription right” covered by the Danish Share Capital Gains Act but was deemed a “financial contract” governed by article 29 of the Gains on Securities and Foreign Currency Act
Venture CapitalOn 14 February 2023, the British Virgin Islands, Costa Rica, the Marshall Islands, and the Russian Federation have been added to the EU tax blacklist by the EU Council.
Cross-BorderGovernanceFollowing the amendments, enacted on 9 June 2022, the corporate tax rate applicable to financial companies has increased from 22 percent to 25.2 percent as per 1 January 2023 and will increase to 26 percent in 2024.
Danish RegulationManagement RemunerationOn 11 May 2022, the European Commission has presented a proposal for a directive providing for a debt-equity bias reduction allowance, or DEBRA, to help businesses access the financing they need and to become more resilient.
On 6 April 2022, the Danish Government presented a proposal for an amendment of, among others, the Danish Corporation Tax Act.
Danish RegulationManagement RemunerationOn 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 RegulationAs 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).
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.
Cross-BorderVenture CapitalOn 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 CapitalOn 29 June 2020, the Danish minister of taxation issued an executive order which defers certain DAC6-related time limits.
ComplianceDAC6On 7 May 2020, a guidance signal which excludes certain alternative investment funds from VAT exemption on management fees entered into force.
Danish RegulationManagement RemunerationDue to the COVID-19 crisis, the European Commission has put forward a proposal for a directive that will defer certain time limits of DAC6, the EU directive regarding mandatory reporting in relation to arrangements with cross-border implications.
ComplianceDAC6A group of financial associations, including Invest Europe, has requested a deferral of the DAC6 reporting obligation until 2021 across all member states and the UK.
ComplianceDAC6Delivering news, insights and free legal documents to players in the Danish venture capital and private equity industry.
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