Denmark Tax Agency Explains Cooperative Company Transition to Income Taxation

The Danish Customs and Tax Administration Jan. 7 posted online Tax Board Binding Answer No. SKM2022.13.SR, clarifying the rules for a cooperative company to transition from a wealth tax to an income tax. A Danish company was subject to cooperative taxation rules but had difficulty complying with the membership turnover requirements for cooperative companies. It exceeded the 35 percent annual turnover threshold with non-members of the group company. The company sought clarification as to the transition process to corporate income taxation. The tax board explained that: 1) the company was taxable at 50 percent under the transition taxation process; 2) ...