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.
Tags: Management Remuneration
Also tagged ‘Management Remuneration’
New rules on severance pay to members of the management of AIFMs
On 8 February 2023, the Danish Government presented a proposal for amendments in the Danish financial regulation, including the Danish Alternative Investment Fund Managers Act.Danish RegulationDisclosure RequirementsManagement Remuneration
Amendments to the Danish Corporation Tax Act and the Danish Tax Assessment Act have entered into force
Following 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 Remuneration
Higher Corporate Tax Rate for Danish Financial Companies and Deductibility Cap on Salary Expenses
On 6 April 2022, the Danish Government presented a proposal for an amendment of, among others, the Danish Corporation Tax Act.Danish RegulationManagement Remuneration
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
Amendments to the Danish Tax Assessment Act and the Danish Act on Taxation of Capital Gains on Shares are Adopted
The amendment act entered into force on 1 January 2020. According to the amendment act, carried interest is taxable 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.Management 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
The New EuVECA Conflict of Interest Rules
On 22 May 2019, the European Commission’s proposed delegated regulation supplementing the EuVECA Regulation was published in the Official Journal of the EU. It clarifies the conflicts of interest rules governing EuVECA managers and what measures to be taken by EuVECA managers to detect, prevent and control conflicts of interest.Conflict of Interests (COI)Disclosure RequirementsGovernanceManagement Remuneration
ESMA Consults on Regulatory Technical Standards Under the ELTIF Regulation
On 28 March 2019, the European Securities and Markets Authority (ESMA) issued a Consultation Paper on draft Regulatory Technical Standards (RTS) under article 25 of the ELTIF Regulation.ESMAKID / PRIIPSManagement RemunerationRegulatory Technical Standards
Guidance Signal Excludes Certain Alternative Investment Funds From VAT Exemption on Management Fees
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
New ESG KPI Report by Invest Europe
Invest Europe, the trade association representing Europe’s private equity and venture capital sector, has published its first ESG KPI report with data from 2021.GovernanceVenture Capital
New countries have been added to the EU tax blacklist
On 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-BorderGovernance
EU Markets in Crypto-assets Regulation (MiCA) impending
The EU Markets in Crypto-Assets Regulation (MiCA) is expected to be passed in April 2023 according to the European Parliament’s legislative updates.Crypto-assetsMiCA
ELTIF 2.0 now published in the OJEU
The amendments include a broader scope of eligible assets, a simplified definition of ‘retail assets’, which include lighter retail investor requirements, and an increased market capitalization threshold.Retail Investors
Thematic review of sustainability disclosures for funds with sustainable investment as the objective
On 3 February 2023, the Danish Financial Supervisory Authority (“DFSA”) published a thematic review of sustainability disclosures for eight funds with sustainable investments as their objective.ComplianceDisclosure RequirementsSustainability
ELTIF 2.0 Adopted
On 15 February 2023, the European Parliament has voted in favour of an update to the EU’s Regulation for Long-Term Investment Funds (ELTIFs), also known as ELTIF 2.0.Retail Investors