Denmark Tax Agency Clarifies Taxation of Capital Gains from Foreign Investments

The Danish Customs and Tax Administration March 18 posted online Supreme Court Decision No. SKM2025.149.HR, clarifying the taxation of capital gains from foreign investments. The taxpayer, a company, sold shares in a foreign company and sought a tax exemption for the gains in accordance with the Danish Capital Gains Tax Act. On appeal, the Supreme Court found that: 1) the foreign company didn’t correspond to a Danish limited liability company because it didn’t distribute dividends based on ownership interest; 2) the exemption requirement under Section 4C of the Act therefore wasn’t met; and 3) the Section 4C requirement didn’t violate ...