Bloomberg Tax
Aug. 29, 2022, 5:00 AM

Denmark Tax Agency Explains Tax Treatment of Transfers to Nonprofit Foundation, Dividend Restriction Lifting

The Danish Customs and Tax Administration Aug. 19 posted online Decision No. SKM2022.396.SR, explaining the tax treatment of transfers to a nonprofit foundation. A taxpayer and his children were sole shareholders in holding companies that owned capital shares in a corporate group. The taxpayer sought clarification on the tax consequences of plans to restructure the group, including the transfer of newly established holding company shares to a nonprofit foundation, cash transfers, and the removal of dividend restrictions on certain shares. The tax agency clarified that because the fund is a nonprofit foundation, not a family fund that grants preferential rights ...