Denmark Tax Agency Explains Tax Transparency of U.S. LLC

The Danish Customs and Tax Administration March 9 posted online Tax Council Decision No. SKM2023.118.SR, clarifying the fiscal transparency of a U.S. limited liability company (LLC), through which Danish individuals sought to invest in U.S. real estate assets. The Danish individual investors sought clarification as to whether the U.S. LLC would be considered tax transparent under Danish law, in order to avoid double taxation. The tax council confirmed that the LLC in question qualifies as tax transparent under Danish tax rules, because it: 1) isn’t subject to independent taxation; and 2) meets the profit distribution requirement for tax transparency by ...