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Generic Tax Name Capital tax - Share income
Tax name in the national language Aktieafkast (aktieavancebeskatning)
Tax name in English Share income
Member State DK-Denmark
Tax in force since 1993/01/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Statutory Notice No 92 of 17 January 2015 (aktieavancebeskatningsloven).

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope
 
Taxpayers

Share income includes both dividends and certain stock transactions.

 

1. Dividends

Companies:

Dividends received by companies and associations etc. from Danish and foreign subsidiaries (a holding of 10 % or more of the share capital) are tax exempt provided the shares have been owned by the parent company continuously for at least one year within which period the dividends have been distributed.

With effect from 1 January 2015, 30% of dividends from portfolio investments (a holding of less that 10 % of the share capital) in non-quoted shares are tax exempt; the remaining 70% is taxed as corporate income at the normal corporate income tax rate (before 2015 such dividends were fully taxable).

Dividends from portfolio investments in quoted shares are taxed as normal corporate income.

 

Individuals:

Dividends are taxed progressively at two rates. Distributed dividends of up to DKK 49,900 (2015) are subject to a 27 % dividend tax as share income. Amounts exceeding DKK 49,900 (2015) are subject to a 42 % dividend tax as share income.

The concept of dividends comprises distributions, including hidden distributions, gross liquidation proceeds paid prior to the calendar year in which the final liquidation of a company takes place and gross proceeds from the transfer of shares to the issuing company (no deduction for acquisition cost). Under conditions, liquidation proceeds distributed prior to the year of final liquidation may be taxed based on the legislation dealing with the taxation of capital gains on shares (with a deduction for acquisition cost). Bonus shares are not treated as dividends. 

 

2. Stock transactions 

Companies:

Profits from the alienation of shares in subsidiaries (a holding of 10 % or more of the share capital) are tax exempt. As of 1 January 2013 the tax on profits of unquoted portfolio shares (a holding of less than 10 % of the share capital) has also been abolished.

Profits from the alienation of quoted portfolio shares are taxed as corporate income. Losses are deductible.

 

Individuals:

Share income is taxed progressively at two rates. Share income under DKK 49,900 (2015) is taxed at 27 %. Share income exceeding DKK 49,900 (2015) is taxed at 42 %.

For shares acquired before the 1st of January 2006 special rules apply. The transactions of professional traders are taxed as personal income.

 
Tax object and basis of assessment

Dividends or the sales price minus acquisition costs.

 
Deductions, Allowances, Credits, Exemptions

See above.

Other shareholders may claim a refund of dividend tax withheld insofar as a convention for the avoidance of double taxation justifies the refund.

 
Rate(s) Structure

Individuals: 27 % and 42 %.

Companies: 23.5 % in 2015 and 22 % as of the income year 2016.

 
Tax due date

 
Tax collector

When dividends are distributed from a Danish company, the company is obliged to withhold af dividend tax of 27 or 22 % depending on the receiving shareholder.

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d51a

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2011 11,668.00 DKK 0.64
2010 12,563.00 DKK 0.70
2009 7,546.00 DKK 0.44
2008 11,039.00 DKK 0.61
2007 16,131.00 DKK 0.93
2006 11,314.00 DKK 0.67
2005 8,281.00 DKK 0.52
2004 5,838.00 DKK 0.39
2003 5,011.00 DKK 0.35
2002 5,452.00 DKK 0.39
2001 5,851.00 DKK 0.43
2000 6,132.00 DKK 0.46

Comments

Revenue included in the personal income tax

In 2005 a break in data happened.