Proposal to Adjust the Danish Rules on Taxation of Carried Interest
Published 2 October 2019
Category: Taxation / VAT
On 1 October 2019, the Danish Government presented a proposal for an amendment of various acts, including the Danish Tax Assessment Act and the Danish Act on Taxation of Capital Gains on Shares.
The proposal includes an adjustment of the rules on taxation of carried interest to the effect that carried interest will be taxed as personal income – not only where the carried interest originates from returns on shares but also where the carried interest originates from other sources of income.
In addition, it is proposed that the scope of the rules on taxation of carried interest is extended to also include carried interest from investments made by infrastructure funds.
Next Steps: If enacted, the changes will enter into force on 1 January 2020.
The proposal (in Danish) is available here.
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