Do you live in another Nordic country and have shares etc. in Denmark?
This applies to you who live in another Nordic country and hold shares etc. in a Danish company and looks at taxation of such income only. This information only applies to income from shares and unit trusts.
Taxation in the country of residence
Dividends are liable to taxation in the country of residence.
On the calculation of tax in the country of residence, a reduction is granted in respect of the tax paid in Denmark.
Taxation in Denmark
Dividends from shares in Danish companies are also liable to taxation in Denmark. A dividend tax of 27% is generally withheld. In accordance with the Nordic double-taxation treaty, Denmark is only entitled to withhold 15% as dividend tax. The excess dividend tax withheld can be refunded if you are able to document that you are subject to full tax liability in another Nordic country.
You can apply for the excess dividend tax here: skat.dk.
Capital gains on shares
This section contains information on listed shares, unlisted shares, shares in private companies and unit trust certificates.
Persons who are subject to limited tax liability are not liable to pay tax in Denmark on the proceeds from the sale of shares.
Taxation takes place in the country of residence in accordance with the rules of that country.
If you are subject to full tax liability in Denmark and emigrate to another country, the shares etc. which you hold at the time of emigrating will be liable to emigration taxation. The taxation takes place on the same terms as if the shares had been sold at the time of emigrating. Your tax return must be submitted by 1 July in the following year at the latest.
You may be granted a postponement on the payment of the calculated emigration tax on your unrealised shares etc. In this case, the following applies: Your emigration tax in Denmark, in principle, constitutes the final taxation. However, any subsequent losses may to some extent be taken into account. The amount of tax postponed will fall due for payment in step with the distribution of dividends etc. and the sale of shares where taxation is lower than under the Danish rules. The balance of your postponed payments will also be written down by any dividend tax paid in Denmark without any part payments being required to be made. By 1 July after the end of each tax year, you must submit a form listing the shares in respect of which a postponement has been granted at the time of you emigrating from Denmark. Thus, you must submit this form each year for as long as you are granted a postponement on the payment of tax on your unrealised shares etc.
For further information (in Danish), please see skat.dk.