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Economy and Banking Sector of Denmark

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Denmark: 0.0 - 27.0%

Withholding tax rates applied on payments of interest and dividends in Denmark are shown in Table 1.

Dividends Interest
Natural person, resident 27.0 %0.0 %
Natural person, non-resident 27.0 %0.0 %
Table 1. Withholding tax rates in Denmark.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Denmark: 69 Signed Agreements

Denmark signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Argentina
 Armenia
 Australia
 Austria
 Bangladesh
 Belarus
 Belgium
 Brazil
 Bulgaria
 Canada
 Chile
 China
 Croatia
 Cyprus
 Czech Republic
 Egypt
 Estonia
 Georgia
 Germany
 Greece
 Hungary
 India
 Indonesia
 Ireland
 Israel
 Italy
 Jamaica
 Japan
 Kenya
 Korea, Republic of
 Kyrgyzstan
 Latvia
 Lithuania
 Luxembourg
 Macedonia
 Malaysia
 Malta
 Mexico
 Montenegro
 Morocco
 Netherlands
 New Zealand
 Pakistan
 Philippines
 Poland
 Portugal
 Romania
 Russian Federation
 Serbia
 Singapore
 Slovakia
 Slovenia
 South Africa
 Sri Lanka
 Switzerland
 Tanzania, United Republic of
 Thailand
 Trinidad and Tobago
 Tunisia
 Turkey
 Uganda
 Ukraine
 United Kingdom
 United States
 Venezuela
 Vietnam
 Zambia

There are also several agreements between Denmark and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):

 Ghana (Mar 2014)
 Kuwait

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 52 Signed Agreements

Denmark signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Andorra
 Anguilla
 Antigua and Barbuda
 Aruba
 Azerbaijan
 Bahamas
 Bahrain
 Barbados
 Belize
 Bermuda
 British Virgin Islands
 Brunei Darussalam (Mar 2013)
 Cayman Islands
 Cook Islands
 Curacao
 Dominica
 Faroe Islands
 Finland
 Gibraltar
 Greenland
 Grenada
 Guernsey
 Iceland
 Isle of Man
 Jersey
 Liberia
 Liechtenstein
 Macau
 Marshall Islands
 Mauritius
 Monaco
 Montserrat
 Norway
 Saint Kitts and Nevis
 Saint Lucia
 Saint Vincent and The Grenadines
 Samoa
 San Marino
 Seychelles
 Sint Maarten (Dutch part)
 Spain
 Sweden
 Turks and Caicos Islands

There are also several agreements between Denmark and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):

 Botswana (Feb 2013)
 Costa Rica
 Guatemala
 Jamaica
 Niue (Oct 2013)
 Panama
 Qatar (Sep 2013)
 Uruguay
 Vanuatu

Automatic Exchange: Starts in September 2017

Denmark signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 58 Bilateral Agreements to Receive Information

Denmark has signed bilateral agreements with 58 jurisdictions to automatically receive information:

 Andorra
 Argentina
 Australia
 Austria
 Belgium
 Bonaire, Saint Eustatius and Saba
 Brazil
 Bulgaria
 Canada
 China
 Colombia
 Croatia
 Cyprus
 Czech Republic
 Estonia
 Faroe Islands
 Finland
 France
 Germany
 Gibraltar
 Greece
 Greenland
 Guernsey
 Hungary
 Iceland
 India
 Ireland
 Isle of Man
 Italy
 Japan
 Jersey
 Korea, Republic of
 Latvia
 Liechtenstein
 Lithuania
 Luxembourg
 Malaysia
 Malta
 Mauritius
 Mexico
 Monaco
 Netherlands
 New Zealand
 Norway
 Poland
 Portugal
 Romania
 San Marino
 Seychelles
 Singapore
 Slovakia
 Slovenia
 South Africa
 Spain
 Sweden
 Switzerland
 United Kingdom
 Uruguay

Automatic Excnange: 70 Bilateral Agreements to Send Information

Denmark has signed bilateral agreements with 70 jurisdictions to automatically send information:

 Andorra
 Anguilla
 Argentina
 Australia
 Austria
 Belgium
 Belize
 Bermuda
 Bonaire, Saint Eustatius and Saba
 Brazil
 British Virgin Islands
 Bulgaria
 Canada
 Cayman Islands
 China
 Colombia
 Costa Rica
 Croatia
 Cyprus
 Czech Republic
 Estonia
 Faroe Islands
 Finland
 France
 Germany
 Gibraltar
 Greece
 Greenland
 Guernsey
 Hungary
 Iceland
 India
 Indonesia
 Ireland
 Isle of Man
 Italy
 Japan
 Jersey
 Korea, Republic of
 Latvia
 Liechtenstein
 Lithuania
 Luxembourg
 Malaysia
 Malta
 Mauritius
 Mexico
 Monaco
 Montserrat
 Netherlands
 New Zealand
 Norway
 Poland
 Portugal
 Romania
 Saint Lucia
 Saint Vincent and The Grenadines
 Samoa
 San Marino
 Seychelles
 Singapore
 Slovakia
 Slovenia
 South Africa
 Spain
 Sweden
 Switzerland
 Turks and Caicos Islands
 United Kingdom
 Uruguay

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Denmark
IGA in effect since 19 November 2012, Model 1

Denmark has FATCA agreement with the U.S. in effect since 19 November 2012 (Intergovernmental Agreement Model 1). Financial institutions operating in Denmark are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Danish financial accounts hold in U.S. financial institutions will be reported to Danish authorities.

Further Information