Denmark:
Taxation Of Liquidation Proceeds - Individuals Resident Abroad
27 September 2011
Kromann Reumert
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Liquidation proceeds to be paid to individuals may qualify as a
dividend payment according to an enacted bill.
Individuals resident abroad and receiving gains from shares in a
Danish company are not liable to pay tax to Denmark on such gains,
whereas dividend may be subject to Danish withholding tax.
As of today, liquidation proceeds received by individuals and
paid in the calendar year of the final dissolution of the relevant
company are always taxed as gains on shares (i.e. not taxable to
Denmark). However, according to the enacted bill, such liquidation
proceeds may qualify as a dividend payment if the individual is
domiciled outside the EU/EEA and has a controlling interest in the
company liquidated.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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