Denmark Tax Agency Clarifies Carryforwards of PE Losses

The Danish Customs and Tax Administration Oct. 28 posted online National Tax Court Decision No. SKM2025.593.LSR, clarifying carryforwards of permanent establishment (PE) losses. The taxpayer, an Austrian company, suffered a loss in its Danish PE. The Tax Agency disallowed the taxpayer’s carryforward of the loss. Upon review, the National Tax Court found that: 1) the taxpayer’s limited tax liability in Denmark under the Corporation Tax Act ended when the PE ceased activity permanently; 2) cessation of tax liability in Denmark causes unused losses to lapse; 3) it was irrelevant whether the PE was still registered in Denmark for business purposes; ...