Denmark Tax Agency Explains Taxation of IRAs Under DTA With U.S.

The Danish Customs and Tax Administration Feb. 28 posted online a tax board answer explaining the tax treatment of U.S. individuals with retirement accounts (IRAs) relocating to Denmark under the 1990 DTA with the U.S. The tax board explained that: 1) payments from traditional and Roth IRAs aren’t subject to tax in Denmark, but payments from rollover IRAs would be taxable; 2) gains on all IRA accounts are subject to capital gains tax in Denmark because double taxation relief does not apply under the DTA; 3) gross income must be calculated under the Danish rules and reported in Danish kroner, ...