Law amending the stock profit taxation law, Corporation Tax Act and various other acts (Convertible Bonds, leasing cars, corporate tax qualification, etc.)
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 1, paragraph 2, the following is inserted as a 2. paragraph: ' Act shall also apply mutatis mutandis on the ownership interests in companies subject to Corporation Tax Act section 2 (C). ' 2. In § 1, paragraph 3, the words ' and other securities convertible into shares or securities as referred to in paragraph 2 '.
3. In article 9, paragraphs 1 and 2, shall be inserted after ' the rules in section 9 (A), ': ', '.
4. Under section 9 shall be inserted before the heading ' bonus shares, share meals and warrants, etc. «:» § 9A. Gain on sale of convertible bonds at a time that is 2 years or more after the acquisition, shall be included when determining taxable income.
(2). Loss on sale of convertible bonds at a time that is 2 years or more after the acquisition, can be deducted from income the year's gains in accordance with paragraph 1. Additional losses can be deducted in the income of the year net profits under section 8.
(3). Further loss that cannot be deducted in accordance with paragraph 2, may be deducted in the following indkomstårs gains in accordance with paragraph 1. In addition, further losses can be deducted in the following indkomstårs net gains under section 8. Losses may be transferred only to deductions in later income year, if it cannot be accommodated in net gains in a previous income year by transfers covered by paragraph 1 or § 8. '
5. In article 17, paragraph 4, and section 19, paragraph 5, shall be replaced by ' sections 8, 9 ' to: ' § § 8-9 A '.
6. The title of Chapter 7 shall be replaced by the following: ' Acquisition and transfer, etc. ' 7. Under section 29 shall be inserted in Chapter 7: ' Acquisition time Companies, etc. and persons section 29 a. shares acquired by conversion of a convertible bond shall be deemed to have acquired at the time of conversion.
Transfer, etc. «§ 2 of the law on income taxation of limited liability companies, etc. (Corporation Tax Act), see. lovbekendtgørelse nr. 1037 of 24. August 2007, as amended by section 2 of Act No. 513 of 7. June 2006, § 8 of law No. 1534 of 19. December 2007 and section 12 of Act No. 335 of 7. May 2008, shall be amended as follows: 1. In article 1, paragraph 1, no. 2, be inserted after the word ' capital ' means ' as well as companies within the scope of section 2 (C), '.
2. In section 2 is inserted as paragraph 6: ' 6. Paragraphs 1 to 3 shall not apply to undertakings as referred to in paragraph 2 (C), which has its head office abroad, in Greenland or on the Faroe Islands. '
3. In paragraph 2 (A), (5) 6. paragraph shall be added after ' stock profit taxation Act § 8, paragraph 3, ': ' and section 9 (A), (3) '.
4. Pursuant to section 2 (B) shall be inserted: ' article 2 (C). Requiring registration, branches of foreign companies and fiscally transparent entities requiring registration, has its registered office or seat of management has in this country, is taxed according to the rules for companies covered by article 1, paragraph 1, no. 2 If direct owners with more than 50 per cent of the capital or with the possession of more than 50 per cent of the voting rights are established in one or more foreign States, on the Faroe Islands or to Greenland, 1) where unit respectively the branch tax is treated as an independent fiscal entity, or 2) that do not exchange information with the Danish authorities after a double taxation treaty, a second international agreement or Convention or a contracted administrative assistance in tax matters.
(2). By fiscally transparent entities means legal persons in accordance with the Danish tax rules do not constitute an independent fiscal entity, but if relationships are governed by the company law rules, a company agreement or a Union Statute.
(3). The participants shall not be deemed to have transferred the assets and liabilities in the transparent entity or the branch at the time of qualification in accordance with paragraph 1. Assets and liabilities that are no longer covered by the Danish taxation shall be deemed abandoned by the participants to the fair market value at the time of qualification in accordance with paragraph 1.
(4). Assets and liabilities are treated in determining the taxable income of the company, as if they were acquired at the times when they were acquired by the participants, and for the acquisition of the summer, for which it was acquired by the participants. Fixed no acquisition at goodwill or other intangible rights as mentioned in § 40 of depreciation, to the extent that they are acquired by one or more participants. Profit in relation to the acquisition cost may be taken into account with an amount equal to the difference between the sales sum and the market value at the time of inclusion under Danish taxation. Any tax write-offs and write-downs, as the participants have been carried out, shall be deemed made by the company. section 4 (A), (2) and (3) shall apply mutatis mutandis to depreciable assets, to the extent they are not already covered by the Danish taxation, because they know such use is considered obtained at the time when the individual participants acquired the asset. The company shall be considered regardless of 1. point to have acquired debts taken on debt to market capitalisation respectively at the time of qualification in accordance with paragraph 1, in so far as the participants are natural persons, there would not have been taxed respectively have had deductions through the sale or redemption at this time. Assets for one or more of the participants are the acquired as part of food, processed by the inventory of the company's income, as if they were acquired by this company as part of food. The company, however, is considered to have acquired these nutrient assets to market value at the time of qualification in accordance with paragraph 1, to the extent that participants would not have been taxed respectively have had deductions at the disposal of the assets at this time. Has one or more of the participants included unrealized profits and losses on securities, the securities will be treated by the inventory of the company's taxable income, as if these gains and losses were taken into account with the company. By statement of loss within the meaning of the stock profit taxation § 8, paragraph 2, and article 17, paragraph 2, dividends, etc., received by the participants, shall be deemed to be received by the company. The company succederer in the participants ' eligible for carry-over deficits, see. equation section 15, and unused deductible losses from previous income year, see. stock profit taxation Act § 8 (3) and section 9 (A), paragraph 3, section 31 of the Act, foreign exchange gain (3), and real estate profit taxation Act § 6, paragraph 4, when deficits and losses are suffered as part of the transparent entity or branch business.
(5). The sale of shares in the company covered by the share of profit taxation law. Rise is considered acquired for an amount equal to the tax value of the participant's share of the assets and pasiverne at the time of qualification in accordance with paragraph 1.
(6). Distributions to owners of companies covered by paragraph 1 shall be deemed to be dividends.
(7). The company shall cease to be covered by paragraph 1, shall be deemed to be discontinued, and the company's assets and liabilities, which is intact at the time of the transition, is considered sold for market value at this point.
(8). In the assessment of process units and branches directly owners are considered transparent entities and foreign branches not to be self-employed tax subjects, even if they fulfil the conditions laid down in paragraph 1, provided that they are not considered tax subjects in their home country.
(9). Paragraphs 1 to 8 shall not apply to collective investment entities (venture capital funds), which only invests in stocks, etc. covered by the stock profit tax law with a view to fully or partially acquire public limited companies and private limited companies in order to participate in the management and operation of these. It is a prerequisite that the following conditions are met: 1) Venture Fund may, in addition to investment commitments and ubehæftede cash deposits in banks alone hold shares etc. covered by the stock profit taxation law. Deposits in a financial institution may be placed in an escrow account as security against any possible warranty claims of the buyer in connection with the venture fund's sale of companies.
2) must only be invested in companies directly or indirectly, alone or jointly with any affiliates, see. tax kontrollovens § 3 (B), has less than 250 employees and have either an annual balance sheet total of less than 125 million. DKK or an annual turnover of less than 250 million. us $.
3) none of the participants must hold more than 50 per cent of the capital or own more than 50 percent of the votes in the venture fund. Group related and Allied participants, see. Exch. rate gains § 4, paragraph 2, and shares of profit taxation Act § 4, paragraph 2, shall be counted in this context for one participant.
4) Venture Fund must have a minimum of 8 participants. Group related and Allied participants, see. Exch. rate gains § 4, paragraph 2, and shares of profit taxation Act § 4, paragraph 2, shall be counted in this context for one participant. '
In law on mergers, divisions and transfers of assets etc. (mergers), see. lovbekendtgørelse nr. 1286 of 8. November 2007, as amended by section 6 of the law No. 335 of 7. May 2008, is amended as follows: 1. In article 8, paragraph 8, shall be inserted after ' stock profit taxation Act § 8, paragraph 3, ': ' and section 9 (A), (3) '.
§ 4 of the law on the imposition of income tax to the State (the tax assessment Act), see. lovbekendtgørelse nr. 1061 by 24. October 2006, as amended, inter alia, by section 6 of the law No. 343 of 18. April 2007 and at the latest by the law No. 336 by 7. May 2008, shall be amended as follows: 1. In paragraph 5 (G) (1), (2) section, the words ' without prejudice to article. Exch. rate gains § 4, paragraph 2.0 ' to: ' without prejudice to article. tax kontrollovens § 3 (B), '.
2. In article 15, paragraph 2, 1. paragraph shall be added after ' stock profit taxation Act § 8, paragraph 3, ': ' and section 9 (A), (3) '.
§ 5 of the tax kontrolloven of the basic regulation. lovbekendtgørelse nr. 1126 of 24. November 2005, as amended, inter alia, by section 18 of Act No. 1414 of 21. December 2005 and most recently by section 13 of the Act No. 335 of 7. May 2008, shall be amended as follows: 1. In paragraph 3 (C), paragraph 7, 8th paragraph, the words ' stock profit taxation Act § § 8 and 14.0 ' to: ' share of profit taxation Act §§ 8, 9 (A) and 14 '.
2. In paragraph 3 (C), paragraph 9, shall be inserted after ' business transformation ': ', an amendment to the fiscal qualification after Corporation Tax Act sections 2 (A) or 2 (C) '.
section 6 of the law on the taxation of shipping company (tonnage tax code), see. lovbekendtgørelse nr. 834 of 29. August 2005, as amended most recently by section 11 of Act No. 540 of 6. June 2007, is amended as follows: 1. In section 1, the following is inserted after 2. paragraph: ' 1. the paragraph does not apply to companies subject to Corporation Tax Act section 2 (C). ' § 7 of the law on the taxation of income of self-employed persons (Corporate Tax Act), see. lovbekendtgørelse nr. 1075 by 10. September 2007, as amended by section 13 of the Act No. 1235 by 24. October 2007, is amended as follows: 1. In article 6 the following paragraph 3 is added: ' (3). Transferred a leased car from enterprise scheme to the taxpayer, included in the inventory of the company's taxable income for the last year, where the car is included in the company's scheme, the amount by which they know the transfer paid lease payments exceed the difference between the car's market value at the conclusion of the lease agreement and the car's market value at the transfer. Transfer of a leased car from enterprise scheme to the taxpayer is considered completed with effect from the beginning of the tax year. '
§ 8 paragraph 1. The law shall enter into force on the day after publication in the Official Gazette.
(2). § 1, nr. 1, section 2, no. 1, 2 and 4, § 5, nr. 2, and section 6 shall take effect for the income year commencing on 15. April 2008 or later. If the participants do not have to coincide for the income year, get provisions effect when the first participant commences a new income year. If the owners of a branch or a transparent device make a selection after foreign rules on 15. April 2008 or later, whereby the condition in corporate tax Act section 2 (C) (1). 1, as amended by section 2 of this Act, no. 4, are met, this provision shall also apply in the income year commenced before the 15. April 2008, but no earlier than from the 15. April 2008.
(3). § 1, nr. 3-5, § 2, nr. 3, § 3, § 4, no. 2, and section 5, no. 1, the effect of the sale of convertible bonds, which will take place on 15. April 2008 or later.
(4). § 1, nr. 7, the effect of conversion of convertible bonds into shares, which will take place on 15. April 2008 or later.
(5). § 4, no. 1, has effect for expenditure on 15 april 2008 or later.
(6). § 7 shall take effect for the cars that are transferred from the company's scheme to the taxpayer when this choice is taken in connection with a tax return filed on 15 July. April 2008 or later.
Given at Christiansborg Palace, on 17 March. June 2008 Under Our Royal hand and Seal MARGRETHE r./Kristian Jensen