Denmark Tax Agency Clarifies Gift Tax on Generational Business Transfers

The Danish Customs and Tax Administration June 4 posted online Tax Council Binding Answer No. SKM2026.268.SR, clarifying gift tax on generational business transfers. The taxpayers, individuals, carried out a generational change of holding company that indirectly held rental real estate properties, paying gift tax at a reduced 10 percent rate. The taxpayers sought to renovate two of the properties, financed by selling a condominium unit in the third property. The taxpayers inquired whether selling the unit would trigger an increase in gift tax under the Estate Tax Act. Upon review, the Tax Council found that: 1) the taxpayer’s rental properties ...