Denmark Tax Agency Clarifies Application of Active Rental Business Rules, Ownership Requirements for Succession

The Danish Customs and Tax Administration May 8 posted Tax Council Binding Answer No. SKM2026.224.SR, clarifying the application of active rental business rules and ownership requirements for succession. The taxpayer, an individual, owned a rental property through his holding company, with the property previously being owned by the taxpayer’s children through their holding company. The taxpayer sought clarification on whether the rental property met the conditions for being considered an active rental, and whether the specified one-year ownership period requirement was satisfied. Upon review, the Tax Council found that: 1) the rental activity qualified as an active rental business because ...