Denmark Tax Agency Clarifies Gift Tax Treatment of Tax-Free Restructurings Involving Succession-Based Share Transfers

The Danish Customs and Tax Administration April 1 posted online Tax Council Binding Answer No. SKM2026.154.SR, clarifying the gift tax treatment of a series of tax-free restructurings involving succession-based share transfers. The taxpayer, an individual, received shares in a Danish company by gift from a parent at the reduced gift tax rate. The taxpayer later planned tax-free restructurings and sought confirmation that the restructurings wouldn’t increase the reduced tax within the three-year holding period. The Danish Tax Agency concluded that the planned restructurings wouldn’t warrant an increase in the reduced gift tax. Upon review, The Tax Council upheld the Tax ...