Denmark Tax Agency Clarifies Taxation of Gains on Voluntary Land Sales to Government

The Danish Tax Council on June 8 posted online Tax Council Binding Answer No. SKM2026.275.SR, clarifying the taxation of gains from voluntary land sales to the government. The taxpayer, an individual landowner, entered into a voluntary conditional agreement to sell land to a public energy company to use for an approved energy project. The Safety Authority stated that the taxpayer’s land would be taken by eminent domain, as authorized under the Electricity Safety Act, if he didn’t agree to voluntarily sell. The taxpayer inquired whether the sale gains would be exempt. Upon review, the Tax Council found that: 1) the ...