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  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/25/2013

Denmark - Exit tax rules challenged by EC 

January 25: The European Commission (EC) formally requested that Denmark amend its rules concerning exit tax on shares held by an individual.

According to an EC release, when an individual leaves Denmark to take up residence in another EU Member State, a tax is collected with respect to the gain realized on the individual’s portfolio of shares—either when the shares are sold, or when the individual receives dividends or other types of income from these shares.


The EC requested that Denmark amend its law because the Danish exit tax rules are alleged to exceed measures needed to prevent tax evasion and because they violate the free movement of people and capital pursuant to treaty measures.





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