Law Amending The Capital Gains Tax Act, Estate Tax And Withholding Tax (More Uniform Taxation Of Gene Rational Survival And Death)

Original Language Title: Law Amending The Capital Gains Tax Act, Estate Tax And Withholding Tax (More Uniform Taxation Of Generational Survival And Death)

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=120369

Law amending the stock profit taxation law, estate tax Act and kildeskatteloven (More uniform taxation of generational alive and death) WE, MARGRETHE the SECOND, by the grace of God Queen of Denmark, do indeed: the Danish Parliament has adopted and we know Our consent confirmed the following law: § 1 of the law on the tax treatment of gains and losses from the sale of shares, etc. (stock profit tax law) of the basic regulation. lovbekendtgørelse nr. 1274 of 31. October 2007, as amended by section 2 of Act No. 335 of 7. May 2008, shall be amended as follows: 1. In article 34, paragraph 1, no. 1, 1. paragraph, the words ' or siblings ' to: ' grandchildren, siblings or grandchildren a cohabitant, meaning a person who at the time of the transfer complies with the conditions laid down in the Act on duties § 22 (1) (d) '.
2. section 34 (1). 2, is repealed.


No. 3-5 is then no. 2-4.

3. In article 34, paragraph 1, no. 3, which will be no. 2, the words ' 15 per cent of the voting value ': ' 1% of stock or limited liability capital '.
4. In article 34, paragraph 5, will be changed in 1. PT. » No. 2-4 ' to: ' no. 2 and 3 ', and in 2. PT. the words ' no. 4 ' to: ' no. 3 '.
5. In article 34, paragraph 6, 1. paragraph, the words ' no. 4 ' to: ' no. 3 '.
6. section 35 is repealed, and instead reads ' section 35. section 34, with the exception of paragraph 1, nr. 1, shall apply mutatis mutandis by way of transfer of the shares to an employee when the employee within the last 5 years have been engaged in a number of hours equal to full-time employment in a total of at least 3 years in the company, etc., which issued shares. The transfer of shares under section 34, with the exception of paragraph 1, nr. 1, can also happen when the employee is within the last 5 years have been engaged in a number of hours equal to full-time employment in a total of at least 3 years in one or more companies that are business related, see. Exch. rate gains § 4, paragraph 2, with the company that has issued shares. In determining the number of hours after 2. point, the number of hours during which the employee has been employed in two or more affiliates, are added together. It is a condition that the companies are business related in both the period during which the employee after 1. item must have been employed in a number of hours equal to full-time employment in a total of at least 3 years in the company, which at the time the shares are transferred.
(2). If the transferred shares as referred to in paragraph 1 has been received by the transferor as consideration by a mergers, divisions, transfers of assets or share exchange within the past 5 years, the number of hours during which the employee has been employed in the transferring or acquired company, shall be included when determining the number of hours in accordance with paragraph 1.
(3). If the company, etc., which have issued the transferred shares as referred to in paragraph 1, are established by transformation of a personally-owned company within the last 5 years, the number of hours during which the employee has been employed in this business, shall be included when calculating the number of hours corresponding to full-time employment in accordance with paragraph 1.
(4). Paragraphs 1 to 3 shall apply mutatis mutandis in a near employee's acquisition of shares from a deceased estate.
Transfer to the former owners with succession § 35 a. section 34, with the exception of paragraph 1, nr. 1, shall apply mutatis mutandis, by the transfer of shares to a former owner, when the handover to the former owner happens within the first 5 years after that the transferor has acquired the shares. It is a condition that the transferor acquired the shares from the previous owner, and that the transferor joined in the previous owner's fiscal position by the acquisition. 1. and 2. paragraph shall apply mutatis mutandis when a previous owner's acquisition of shares from a deceased estate. '
7. In article 38, paragraph 3, 4. paragraph, the words ' in accordance with sections 34 and 35 ' to: ' in accordance with sections 34, 35 and 35 (A) '.
§ 2 of the law on tax on death (Estate Tax Act), see. lovbekendtgørelse nr. 908 of 28. August 2006, as amended, inter alia, by section 2 of Act No. 1580 by 20. December 2006 and most recently by section 3 of Act No. 335 of 7. May 2008, shall be amended as follows: 1. In article 27, paragraph 1, 1st paragraph, however, shall be replaced by ' paragraph 2 ' is replaced by: ' However, paragraphs 2 and 3. '
2. In article 27 shall be inserted after paragraph 2 becomes paragraph 3: ' (3). Capital gains on death's estate sale or other form of abandonment with succession to a close employee or a former owner in accordance with the rules in the stock profit taxation Act § § 35 or 35 A or withholding § 33 (C), paragraph 12 or 13 shall not be taken into account in determining income bobeskatnings. '


Paragraph 3 becomes paragraph 4.

3. In section 29 (1), (2). paragraph, the words ' a business enterprise or a share thereof ' to: ' a business, one of several companies, or a share of one or more business organizations '.
4. Article 29, paragraph 2 2. paragraphs, are hereby repealed, and instead is inserted: ' 1. paragraph shall not apply to the extent that the property was used in the deceased's or a surviving spouse's business activities. If more than half of the property was used in the deceased's or a surviving spouse's professional activity shall 1. point, however, does not apply to any part of the property the profit relating to the concerned estate. '
5. In article 29, paragraph 5, shall be replaced by ' paragraphs 1, 3 and 4 ': ' paragraph 1-4 '.
6. In article 37, paragraph 1 1. paragraph shall be added after ' brother's or sister's child or grandchild «:», near employee, the meaning. stock profit taxation Act section 35 and withholding section 33 C (12), or a previous owner, see. stock profit taxation Act section 35 (A) and section 33 (C) withholding tax, paragraph 13 '.
§ 3 in kildeskatteloven of the basic regulation. lovbekendtgørelse nr. 1086 of 14. November 2005, as amended, inter alia, by section 7 of the Act No. 1414 of 21. December 2005, section 6 of the law No. 406 of 8. May 2006, section 9 of Act No. 515 of 7. June 2006, § 10 of lov nr. 1545 by 20. December 2006, § 3 of law No. 345 of 18. April 2007 and section 3 of Act No. 347 of 18. April 2007 and at the latest upon section 7 of the Act No. 335 of 7. May 2008, shall be amended as follows: 1. In article 2, paragraph 1, no. 4, 9. paragraph, the words ' section 34 and section 35 ' to: ' sections 34, 35 and 35 (A) '.
2. In section 26 (A) the following paragraph 8 is added: ' (8). A spouse may transfer its deposits on account of establishment to the other spouse, who then joins the transferor's tax position with regard to these deposits. '
3. section 33 (C), paragraph 1 1. PT. is replaced by the following: ' by way of transfer while still alive by a professional company, one of several companies, or a share of one or more business organizations for children, grandchildren, siblings, siblings ' children, grandchildren or siblings a cohabitant, meaning a person who at the time of the transfer complies with the conditions laid down in the Act on duties § 22 (1) (d), the parties may in the transfer apply rules laid down in paragraphs 2 to 11 and 14. '
4. section 33 (C), (1), (3). paragraph, shall be repealed, and replaced by ' paragraphs 2 to 11 and 14 shall apply only for taxation of real estate profits relating to immovable property subject to the real estate profit tax Act, to the extent the property is used in the transferor or the transferor's cohabiting spouse's business activities. If more than half of the property used in the deceased or a surviving spouse's professional activity shall 1. point, however, apply to the entire real estate profit on the property. '

5. In section 33 (C), (1) 6. point, there will be 7. paragraph, the words ' covered by 3. paragraph ' to: ' covered by 3. and (4). section «6. In § 33 (C), (1) 7. PT. , there will be 8. paragraph, the words ' 13 ' to: ' 14 '.
7. In section 33 (C), (1) 8. point, there will be 9. paragraph, the words ' stock profit taxation Act section 34 and section 35 ' to: ' stock profit tax act sections 34, 35 and 35 (A) '.
8. section 33 (C), paragraph 12 shall be repealed, and replaced by: ' (12). Paragraphs 1 to 11 and 14 shall apply mutatis mutandis when transferred to an employee when the employee within the last 5 years have been engaged in a number of hours equal to full-time employment in a total of at least 3 years in the company. Paragraphs 1 to 11 and 14 shall apply mutatis mutandis upon surrender of one of several companies, or a share of one or more businesses to a former employee, if the transfer takes place, no later than 5 years after the former employee for the first time acquired a share of the company, and if the former employee within the last 5 years prior to the first acquisition of a share of the company was engaged in a number of hours equal to full-time employment in a total of at least 3 years in the the company. 1. and 2. paragraph shall apply mutatis mutandis by an employee or a former employee near the acquisition of a business, one of several companies, or a share of one or more business organizations from a deceased estate.
Paragraph 13. Paragraphs 1 to 11 and 14 shall apply mutatis mutandis at the transfer of a business, one of several companies, or a share of one or more businesses to a former owner, when the handover to the former owner happens within the first 5 years after that the transferor has acquired the company or proportion thereof. It is a condition that the transferor acquired the company or proportion thereof from the previous owner, and that the transferor joined in the previous owner's fiscal position by the acquisition. 1. and 2. paragraph shall apply mutatis mutandis when a previous owner's acquisition of a business, one of several companies, or a share of one or more business organizations from a deceased estate. '
Paragraph 13 will be hereafter referred to paragraph 14.

9. In paragraph 33 (D), paragraph 1 1. PT. the words ' paragraphs 1 and 12 ': ' paragraph 1, 12 and 13 ' and ' section 34 and section 35 ' to: ' sections 34, 35 and 35 (A) '.
§ 4 paragraph 1. The law shall enter into force on the 1. January 2009.
(2). sections 1 and 3 shall take effect for transfers, which will take place on 1. January 2009 or later.
(3). § 2, nr. 1 and 2, shall take effect for the sale, which will take place on 1. January 2009 or later.
(4). § 2, nr. 3-5, shall apply when a person has died as a result of the 1. January 2009 or later. By switching of undivided bo in the surviving spouse alive, the provisions apply where the request for change is filed on 1. January 2009 or later.
(5). § 2, nr. 6, has effect for distributions, which will take place on 1. January 2009 or later.

Given at Christiansborg Palace, on 17 March. June 2008 Under Our Royal hand and Seal MARGRETHE r./Kristian Jensen