Denmark - ApS/Other jurisdictions

Denmark, a member of the EU, is a country with one of the highest number of Double Tax treaties concluded  (at the present time it has treaties in force with more than 70 countries). Denmark is universally known as a jurisdiction with a standard level of taxation (the rate of corporate tax in Denmark is 25%). Consequently, it can in no way be described as a “tax haven”. 

At the same time, legislative amendments made in 1998 provide Danish holding companies (hereafter referred to as DHCs) with the facility to pay dividends received from abroad to their parent companies resident in a country having a tax treaty with Denmark, without liability for any Danish tax. Given that inbound dividends paid to Denmark from many countries benefit from the favourable terms negotiated in Denmark’s double tax treaties, the Danish holding company is becoming an advantageous vehicle through which to establish companies resident in other countries.

General provisions. The Danish company will be considered as DHC (and, accordingly, will have favourable tax conditions) if it owns not less than 25 % capital in the subsidiary abroad and, in turn, not less than 25 % of capital of DHC belong to its "parent" foreign company (in general, there are no restrictions on jurisdiction of the "parent" company, however privileges will operate only if the "parent" company is registered in the country having the Double Tax treaty with Denmark).
Important restriction – favourable tax conditions will not be applied if DHC receives dividends from "low tax financial establishment ", i.e. - bank, the investment, financial company with taxation in the country of its registration less than 20 %.

The incorporation of companies in Denmark is carried out by the Danish Commerce and Companies Agency – the DCCA.