Reporting of co-taxation matters must now be carried out on an ongoing basis

Announcement on new reporting rules

The Ministry of Taxation has issued an announcement on new reporting rules for co-taxed companies. The change comes as a result of the new reporting system for corporate tax returns. The consequences include, among other things, the need to report on changes in the circle of co-taxed companies on an ongoing basis.

Who is covered by the reporting rules?

All taxable companies that are part of a jointly taxed group are subject to the new requirements for digital reporting to SKAT. However, it is the management company that has the obligation to report as a starting point.

What requirements must be met when entering and exiting a co-taxation scheme?

It is necessary to digitally inform SKAT about entry and exit from a co-taxation scheme. In this context, the reason for entry and exit must also be provided. In the future, there will be reporting of changes in the co-taxation circle no later than 1 month after the change.

Thus, it is no longer sufficient to disclose changes when submitting the annual tax return. It thus requires companies to continuously monitor co-taxation by, for example, buying and selling shareholdings or by obtaining a controlling influence in other ways.

There is also a reporting obligation if the group changes management company. This notification must also be made no later than 1 month after the change, and the obligation falls on the new management company.

How are the reporting rules made?

In SKAT's key itself system for professions, the reporting can be made under the “Tax” tab. Then press on to “corporate tax”, where changes can be made to the co-taxation circle.

Entry into force

The new ordinance has entered into force on 1 October 2014 and is valid from the income year 2014. For the period from 1 January to 30 September, entry and exit information must be reported by 1 November 2014 at the latest. For changes in October-December 2014, the deadline is one month.

Contact SkatteInform

We provide qualified answers to your tax questions. If you are interested in assistance with reporting for the co-taxation circle, we are happy to be available upon further agreement.

Call us by phone 33 32 10 10

Send an email at info@skatteinform.dk

or visit us at www.SkatteInform.com

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1360 Copenhagen K

We do not accept responsibility for any dispositions that may be made on the basis of this newsletter without prior individual advice. Likewise, we accept no responsibility for any errors and omissions.

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