Denmark Tax Ministry Posts Decision on Taxation of Rental Property Transfers in Generational Business Changes

The Danish Ministry of Taxation April 16 posted online National Tax Board Decision AFG No. 9431 for Tax Council Binding Answer No. SKM2026.113.SR, on income taxation concerning rental property transfers in generational business changes. The taxpayer, an individual, sought to transfer his shares in a parent company with tax succession to his son. The taxpayer inquired whether a real property owned by a subsidiary met the tax succession requirement that an independent natural or legal person didn’t habitually enter into agreements of economic significance for the property. The decision confirms that: 1) the determination of whether an independent third party ...