Denmark Tax Agency Clarifies Share-Based Payment Regime Upon Business Transfer

The Danish Customs and Tax Administration May 9 posted online Tax Council Binding Answer No. SKM2025.247.SR, clarifying the tax treatment of share-based remuneration following a business transfer. The taxpayer, a former employee of a Danish insurance company and recipient of equity-based compensation, acquired the company and continued providing insurance services to a Swedish entity within the same group. The taxpayer sought clarification on the tax treatment of shares and options as income from prior employment and their inclusion in the personal holding entity’s payroll tax base. The Tax Council held that: 1) the shares that vested before the transfer were ...