The funds and associations covered by the Fund Income Tax Law are to return their taxable income in the same way as companies covered by the Corporation Tax Law.
Non‑commercial income is taxed only if it exceeds DKK 25,000 or DKK 200,000 in the case of associations.
Funds and associations may deduct money that they distribute or allocate for purposes of public utility or other benevolent purposes. They may also deduct any money distributed pursuant to their statutes, provided the recipient is taxable on what he receives. Deduction reduced by tax free dividents recived.
The Fund Income Tax Law allows funds and associations to make a consolidation deduction in their income returns. Computed as 25 pct. of distributions for purposes of public utility or other benevolent purposes.
If a person, a company, a fund or association etc., contributes to a foreign fund or trust established in a country where the tax rates on funds or trusts are essentially lower than the Danish tax rate, the contributor is charged at 20% on the part of the annual contribution exceeding 10,000 DKK. Contributors may on request be exempted from the charge, if the amount of contribution to the foreign fund or trust is used for charitable or public purposes for the benefit of a wider circle of people.