Denmark Tax Agency Clarifies Gift Tax Residency Rules Under DTA With Germany

The Danish Customs and Tax Administration Feb. 6 posted Tax Council Binding Answer No. SKM2026.73.SR, clarifying the gift tax residency rules under the 1995 DTA with Germany. The taxpayer, a German citizen, moved to Denmark, upon which German tax authorities considered her deregistered from her German residence. The taxpayer inquired whether she could be treated as a German resident under the DTA’s five-year rule, to avoid Danish gift tax on a monetary gift from her German-resident father. On review, the Danish Tax Council found that: 1) the taxpayer was no longer fully liable to tax in Germany, which the five-year ...