10 Things You Need to Know about Tax in Denmark
- 1. When do You Become Taxable in Denmark
- 2. How to Register in the Danish Tax System
- 3. What is Included in Your Taxable Income
- 4. How Much Tax Do You Need to Pay
- 5. Social Security Network for Work within the EU
- 6. Does Your Company Need Foreign Workers
- 7. Company or Self-Employed
- 8. How to Pay Salary to Yourself as a Major Shareholder
- 9. Securities and Other Activities Abroad
- 10. How to Avoid Double Taxation
- Starting a Business
- Does Your Company Need Foreign Workers?
- COVID 19 - THE DANISH TAX AUTHORITY OFFERS AID PACKAGES FOR YOU AND YOUR BUSINESS
- Larger deductions for companies that need to invest in fixed assets or small assets
9. Securities and Other Activities Abroad: During Your Stay in Denmark
If you stay for a long period of time in Denmark (as described in the section in this article about full tax liability), and you own securities, property or other assets abroad; you must report and pay tax on the capital appreciation of some assets for the period you are fully tax liable to Denmark. In Denmark, we call this "Garden Gate taxation". For this tax, liability commences on the day you step through the gate of (the first day you set foot in Denmark) for the first time. It ends the day you exit through gate again (leave Denmark).
This tax requires you to enter the market value of some of your assets at the time of your arrival in Denmark. If you sell the assets during the period, in which you are fully liable to Denmark, you must pay tax on the difference between the selling price and the value at the time of your entry to Denmark.
When you move out of Denmark, your assets are considered sold and you must pay tax on the value increase during the period you were fully liable to pay tax to Denmark, even though you still own them and have not sold any of them. If you cannot pay the tax, because you have not realized a gain on the assets, then it is possible to obtain a grace period on tax paid until you sell the assets. However, in order to apply for this grace period, you must meet some requirements. This means that you must take stock of your inventory every year before June 30th, reporting what was bought and sold in your portfolio over the year.
There are three different retention schemes. One for shares, one for bonds and one for other assets.
If you need help with evaluating and reporting your taxable income, contact SkatteInform.
*SkatteInform does not take any responsibility for any actions taken based on the information provided in this article, before receiving individual tax advice.