The taxation of securities in foreign deposit accounts

Taxation of securities held in foreign depositories

If you have invested in stocks, bonds, investment certificates or other securities through a foreign financial institution, pay particular attention to how these are taxed.

Taxation of these assets can be complex and special requirements are imposed on you as a reporting agent.

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Why is it important to get professional help?

Avoid double taxation: Foreign investment can lead to a risk of double taxation (e.g. dividends). We help you understand the applicable double taxation treaties, so that you only pay tax in one place.

If you have not reported your inventory to the Danish Tax Agency (Skattestyrelsen) in a timely manner, you may risk losing deductions for subsequent losses on your assets. This can lead to double taxation.

Moving in and out of Denmark: Whether you are moving to or from Denmark, you must report stocks, gains, and losses.

Correct reporting: If you have investments in a foreign financial institution, you are obliged to report them correctly to the Danish tax authorities. Failure or incorrect reporting can lead to significant fines and post-regulation consequences .

Optimize your tax: Taxation of foreign securities can be more complex than Danish investments. It is worth understanding how return on foreign securities is taxed. Taxation of income may be high and there may be a low deductible value of losses.

Currency risk: Gains and losses on foreign securities are often affected by exchange rate fluctuations, which can have tax implications.

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Contact us today

Contact us today for professional assistance with reporting securities  in foreign financial institutions.

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Disclaimer

The above information is for guidance purposes only, and we accept no responsibility for decisions made based on this information without prior individual advice. We accept no responsibility for errors or omissions.