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  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/26/2012

Denmark - Tax treatment of shareholder loans, pensions, employee benefits 

September 26:  Recent legislative changes in Denmark include the following tax-related provisions.

Shareholder loans

A bill passed by Parliament on 13 September 2012 limits the ability of “major shareholders” to borrow money from a company. The legislation removes the tax incentives for major shareholders to borrow from the company as a tax-free alternative to salary or dividends. The legislation is primarily directed towards shareholders who have a controlling interest in the lending company.


Read a September 2012 report (Danish) prepared by the KPMG member firm in Denmark: Nye regler om aktionærlån - værd at vide

Pension changes

Effective for tax years beginning in 2013, deductions may no longer be claimed for contributions to certain pension plans. The repeal of the deduction applies to both private plans and "schemes" (ordinger) through employers. There is a transition rule for companies subject to a collective agreement (kollektiv overenskomst).


The pension reform introduces a new capital plan for tax year 2013 in which 27,600 DKK (approximately U.S. $4,500) may be contributed to the plan, but amounts contributed to the plan over that amount will be subject to a tax at a rate of 20%.


Read a September 2012 report (Danish) prepared by the KPMG member firm in Denmark: Reglerne for indbetalinger på kapitalpension ændres fra og med indkomståret 2013

Enhanced penalties for wage, benefit reporting

Effective 1 July 2012, stricter penalties may be imposed on companies that do not timely or correctly report wages, salaries, or employee benefits to the Danish tax administration (SKAT). The amount of civil penalties can range between 5,000 - 80,000 DKK (approximately U.S. $800 - $14,000), depending on the number of employees in the company.


The tax administration reported that of 3,000 companies examined, approximately 1,300 companies would have been subject to a penalty for untimely or inaccurate reporting of wages or employee benefits under the new rules.


Read a September 2012 report (Danish) prepared by the KPMG member firm in Denmark: SKAT tager bødeblokken frem




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