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Taxation in Denmark

In: Business and Management

Submitted By db21benz
Words 2021
Pages 9
Deloitte International Tax and Business Guides, provides information on Denmark regarding the investment climate, operating conditions and its tax system. If a company’s objective is to expand internationally, and is properly structured, a Denmark holding company can act as a legally tax-exempt conduit for dividends received from subsidiaries around the world (1).

A Denmark holding company is legally exempt from dividends tax received from a foreign subsidiary (1). Denmark levies no withholding tax on dividends paid to the foreign parent. Additionally, a holding company is not required to pay capital gains tax on shares held for more than three years (1). A Denmark company has access to a network of double taxation treaties Denmark has signed with major trading nations around the world. A minimum of one shareholder and one director is required for Denmark company formation. The shareholder and director can be the same person, and need not be resident in Denmark (1).

Denmark’s ranked as the world's 11th freest economy in the Heritage Foundation's 2012 Index of Economic Freedom, which measures freedom as it relates in business, trade, monetary, financial, investment and labor markets (Appendix 3). Denmark’s GDP per capita (PPP) for 2011 was estimated at $40,200 USD. Denmark's fiscal position remains among the strongest in the EU at 46.5% of GDP in 2011 (Appendix 4). In its 2012 World Competitiveness Yearbook, the Switzerland-based IMD positively ranks Denmark as the world’s 3rd most competitive economy. The ranking takes into account factors including economic performance, business efficiency, government efficiency and infrastructure (Appendix 5).

An international company formed in Denmark has a positive image from a marketing perspective. The country is one of the founder members of the European Union. Additionally, Denmark is...

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