Denmark Tax Agency Clarifies Taxation of Fiscally Transparent Entities in Proposed Restructuring

The Danish Customs and Tax Administration July 6 posted online Tax Board Binding Answer No. SKM2023.317.SR, clarifying the taxation of fiscally transparent entities in a proposed restructuring. The taxpayer intended to establish a corporate structure where two U.K. capital companies would jointly establish Danish limited partnerships or partner companies, for purposes of purchasing and holding ownership of properties in Denmark. The taxpayer sought confirmation regarding the Danish entities’ tax status. The Tax Council confirmed that the Danish entities would be considered tax resident in Denmark, because: 1) the U.K. companies were independent tax subjects under the 1980 DTA between Denmark ...