Ordinance To The Law On The Taxation Of Trusts And Certain Associations (Fonds Tax Law)

Original Language Title: Bekendtgørelse af lov om beskatning af fonde og visse foreninger (fondsbeskatningsloven)

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Ordinance to the law on the taxation of trusts and certain associations (fonds tax law)

Hereby promulgated law on the taxation of trusts and certain associations (fonds of the taxation code), see. lovbekendtgørelse nr. 1248 by 2. November 2010 with the changes imposed by section 7 of the Act No. 513 of 7. June 2006, § 3 of law No. 254 of 30. March 2011 and § 3 of the law No. 433 of 16. may 2012.

§ 1. Tax liability under this Act include: 1) Funds, which are subject to the law on foundations and certain associations or by law on trader funds, unless the Fund is exempt from these laws.

2) associations covered by the law on foundations and certain associations in so far as the Association is not taxable under point 1. 3.3) associations covered by the law on foundations and certain associations in respect of: (a) employers ' associations and trade unions), (b)) other professional associations, whose capital is intended to be used to support members during the conflict, as well as c) associations, if funds mainly come from the associations referred to in (a) and (b) if the Association has as a aims to support companies or persons under the academic conflict or actually providing such support.

4) Funds and other self-governing institutions that have been set up abroad, the Faroe Islands or Greenland, whose management has its seat here in the country. This is true regardless of which fund or the self-governing institution might be registered.

(2). Tax liability in accordance with paragraph 1, nr. 1, does not include funds covered by the pension return tax law or foundations, providing pension plans covered by the pension yield tax law § 1, paragraph 1.

§ 1 (A). (repealed).

§ 2. Tax chargeable event and cessation of societies and associations, etc., follow the applicable rules.

(2). Where such a change, to a foundation or an association either released from taxation after Corporation Tax Act § 1 (1) (8). 1-2 (a) and 3 (a)-6, to taxation in accordance with this law or released from taxation under this Act for the taxation after Corporation Tax Act § 1 (1) (8). 1-2 a, 2 h, and 3 a-5 b, get the changeover effect only for tax liability in accordance with this law or Corporation Tax Act from the date of expiry of the relevant income year. An amendment, after which the tax liability to be imposed after others rules in this law than in the past, also get first effect from the expiry of the relevant income year. Corporation Tax Act section 5 (C), paragraph 2, shall apply mutatis mutandis with regard to the assets and liabilities, both before and after the transition is subject to taxation. By changes that results in taxation must be done in accordance with other regulations in this law than in the past, find corporate tax Act section 5 (C), paragraph 2, apply mutatis mutandis. Corporation Tax Act § 5 D shall apply mutatis mutandis with respect to other assets and liabilities. section 22 shall also apply mutatis mutandis.

(3). Where such a change, to a foundation or association are released from taxation according to the rules laid down in this Act to taxation after Corporation Tax Act § 1 (1) (8). 3 corporate tax Act section 5 (A) shall apply mutatis mutandis.

(4). Where such a change, to a foundation or association are released from taxation after Corporation Tax Act § 1 (1) (8). 3, to taxation according to the rules laid down in this law, the provisions of the corporate tax Act section 5 (B), paragraph 1 shall apply mutatis mutandis. § 22 and corporate tax Act § 5 D shall also apply mutatis mutandis.

(5). At the onset or cessation of tax liability as a result of management's seat moved, for companies and associations, etc., the provisions in force on the input values and sunset taxation apply mutatis mutandis.

§ 3. The taxable income of those in § 1, nr. 1, 2 and 4, said foundations and associations are assessed in accordance with the tax legislation for registered limited liability companies general rules in force with the exceptions to paragraphs 2-6 as well as §§ 4-6.

(2). Income from professional activities is included in its entirety in the inventory in accordance with paragraph 1. The rest of the total income, by contrast, are taxed only to the extent that it exceeds DKK 25,000, for associations as referred to in § 1, nr. 2, however, 200,000 USD Deduction as mentioned in 2. point made before deductions in accordance with §§ 4-6. If income after deduction has been made under section 4, the deficit, the part of the deficit, which is equivalent to the deductible net losses after profit tax Act, kursgevinstloven and the stock is deducted from taxable income in the following year. Deduction can only be transferred to a later income year, in so far as it cannot be accommodated in a previous year's taxable income.

(3). Funds covered by section 1, nr. 1 and 4, can apply the principle in determining recoverable amount of gains and losses on the Portfolio shares, see. stock profit taxation § 9. The Fund may not, however, apply the principle of realisation of investment certificates as referred to in the stock profit tax Act section 20, paragraph 1, and investment certificates as referred to in section 20 A share profit tax, if it is covered by the definition in the stock profit taxation Act section 22, paragraphs 2 and 3. In addition, the Fund may not apply realizable principle on portfolio shares admitted to trading on a regulated market or a multilateral trading facility, if the Fund in an income year have used the inventory principle on such shares. It is a condition that the Fund uses realizable principle on all portfolio shares with the exceptions arising from the 2. and (3). paragraph If the Fund in an income year has used stock principle on portfolio shares, which are not admitted to trading on a regulated market or a multilateral trading facility, the Fund's access after 1. paragraph to apply the principle of realisation on portfolio shares. Access after 1. paragraph to apply the principle of realisation on portfolio shares admitted to trading on a regulated market or a multilateral trading facility is subject to the condition that there will be handouts for an amount equal to the sum of the taxable income before deductions in accordance with sections 4 and 5 and income which according to paragraph 2 and paragraph 10 should not be taken into account for the taxable income. Provisions covered by article 4, paragraph 4, 8 and 9 and § 5 (1) and (2) shall be treated as distributions. Ceremonies, where provisions used, shall, however, be excluded. It is not required after 6. point, that film earned is tax deductible. The condition of 6. paragraph shall be deemed to be fulfilled, even if the Fund has used part of the income for that income year for the payment of income tax, see. section 11, or has used part of the income for that income year for the payment of taxes to a foreign State, the Faroe Islands or Greenland, as a result of the foreign State, the Faroe Islands or Greenland are withholding tax of dividends of shares, interest or royalty from sources there. If the Fund in an income year does not comply with the condition set out in 6. paragraph, or where in an income year triggered taxation pursuant to section 4, paragraph 6 or 8, of unused provision amounts accrued during the income year 2010 or later, used inventory principle from and with that income year on such shares. Stock profit taxation Act section 24, paragraph 3, 1. paragraph shall apply when switching from realisation principle to storage principle.

(4). Funds covered by section 1, nr. 1 and 4, which owns the capital of a trust, use realizable principle by the statement of gains and losses on the Portfolio shares, see. stock profit taxation § 9. To the extent that the shares to be transferred as part of that capital in whole or in part, are released for free property, gains and losses are not taken into account in determining taxable income. It is a condition for the application of 1. and 2. point that the shares are subject to on-call time limitation as mentioned in section 9, paragraph 1, of the law on foundations and certain associations and may not be used for distribution as referred to in the same article 9, paragraph 5.

(5). Losses on shares in accordance with paragraphs 3 and 4 is taxed according to the principle, be deducted according to the rules of the realizable equity profit taxation § 9, paragraphs 3 and 4. By losses on contracts that contain the right or duty to cede shares which have the character of the Portfolio shares, see. stock profit taxation § 9, find the rules in section 31 of the Act apply mutatis mutandis Exch. rate gains, when the Fund pursuant to paragraph 3 or 4 uses realizable principle by statement of gains and losses on the Portfolio shares.

(6). Gifts for funds subject to section 1, nr. 1 and 4, shall only be taken into account in determining taxable income if the gift is to be used for distribution or of the staff regulations is specific, to the capital during a defined period of time to be used for distribution. Gifts to the Fund, if the bylaws conferred on members of certain families have priority to distributions from the Fund or right of first refusal to take up certain posts, etc., see. section 7 of the law on foundations and certain associations and section 8 of the Act on trader funds are taken into consideration in determining the Fund's taxable income, in the case of a gift, whereby a Fund's capital be expanded. Of gifts given to the formation of funds as referred to in 2. paragraph, subject to a tax of 20 per cent of the basic regulation. However, 1. PT.

(7). In § 1, nr. 3, referred to associations including rules in sections 8 and 9.

section 3 (A). If a taxpayer subject to withholding tax, estate tax Act § 1 clause 1 (2) of the Corporation Tax Act § 1 or Fund tax law § 1 depositor funds in a foreign fund or trust that is formed or created in a country where funds or trusts are taxed substantially lower than after the Danish rules, matches the depositor a duty of 20% of the deposit. This applies, however, only the portion of the annual deposits in excess of 10,000 kr.


(2). Paragraph 1 shall not apply where the depositor certifying that the funds in the foreign fund or trust used in the general interest for shattering or otherwise non-profit purposes for the benefit of a larger circle of people.

(3). Deposits made by foreign companies and associations, etc., which must be checked, see. Corporation Tax Act section 32, paragraph 6, of the taxable subject to paragraph 1, shall be deemed made by the taxable person.

(4). Paragraphs 1 to 3 shall apply mutatis mutandis to taxable persons, which will be fully taxable in accordance with one of the provisions referred to in paragraph 1, provided that they have previously been covered by one of these provisions and within the last 5 years prior to the full tax interest reentry have made deposits in a foreign fund or trust referred to in paragraph 1. Deposits are considered in these cases made by the full tax interest return.

(5). A foreign fund or trust shall be deemed to be also taxed considerably lower than after the Danish rules, if there is an agreement on tax rate or tax base with the tax authorities of the State in which it is domiciled, including, in accordance with the provisions of a tax treaty, or if the tax rules of the State in question is decorated according to where the depositor is resident.

(6). Deposit the tax shall be due and payable when the transfer is made. The depositor shall at the same time give notice to the Customs and tax administration of the taxable deposits. The deposit is considered timely, when it takes place not later than one month after the due date. If no notification is lodged after 2. paragraph, the provisions of §§ 41-43 of the law on the tax on estates and gifts by analogy. Paid deposit fee is not filed in due time, the payment of interest pursuant to section 7, paragraph 1, of the basic regulation. paragraph 2, of the additional Act.

§ 4. In the after section 3 income ascertained pursuant to § 1, nr. 1, 2 and 4, the said funds and associations carry out deductions for distributions to general interest for shattering or otherwise non-profit purposes.

(2). Paragraph 1 shall also apply where the distribution is done to the satisfaction of the statutory purposes, there is no general interest for shattering or otherwise charitable, when the recipient of the film earned is taxable thereof pursuant to § § 1 or 2 withholding tax, or estate tax Act section 1, paragraphs 2 or 3, corporate tax act sections 1 or 2 or in accordance with § 1, nr. 1, 2 or 4 of this Act. 1. paragraph applies, although in the case of gifts to another fund, which shall not be taken into account for the taxable income, within the meaning of this Fund. section 3, paragraph 6, except in the case of reciprocal gifts between funds.

(3). Dispensations in accordance with paragraphs 1 and 2 shall be deducted from income under section 3 of the ascertained at the time the Fund or the Association is legally obliged to carry out the Grammys. Dispensations in accordance with paragraph 1, that spans multiple income year, the Fund may, however, deduct or association at the time the Fund or the Association is legally obliged to carry out the ceremony, or at those times when the individual instalments due. It once chosen to be deducted in time after 2. item cannot be changed for the actual ceremony.

(4). Foundations and associations as referred to in § 1, nr. 1, 2 and 4, in the after section 3 incremental income also make deductions for provision for fulfilment of general interest for shattering or otherwise non-profit purposes.

(5). Provisions referred to in paragraph 4 must be used in its entirety within 5 years after the end of the provision this year. Tax Minister lays down detailed rules on the accounting requirements for the provision, including that provision be nested each year on account of himself and secreted efficiently from the Fund or other funds of the Association.

(6). Is a provision referred to in paragraph 4 is not used in its entirety before expiry of the period referred to in paragraph 5, account shall be taken of the non-used provision amount with a supplement of 5% for each year from the end of the year and until the expiry of the provision in the taxable income for the year provision. Amount pursuant to article 3, paragraph 2, and paragraph 10 should not be included in the after section 3 income for the year, after provisioning liquidated is taxed, however, does not.

(7). Customs and tax administration may in exceptional cases authorise the provision shall apply after the expiry of the period referred to in paragraph 5.

(8). Customs and tax administration may also allow the funds as referred to in § 1, nr. 1 and 4, make provisions as referred to in paragraph 4 to the satisfaction of cultural, but not given purposes, without the condition set out in paragraph 5 shall be applicable. By derogation must, however, be set a time limit for the use of the accrued amount, not exceeding 15 years. Used the provisions amount to anything other than the general interest for shattering or otherwise non-profit cultural purposes or after the time limit laid down, shall be included in the exemption it not used provisioning amount with a surcharge of 5% for each year from provisioning the end of the year and until the end of the year in which this provision is applied or the period expires, the taxable income for the year provision.

(9). Foundations and associations, who for a year have made provisions in accordance with paragraph 4, or 8, after expiry of the deadline for the submission of tax return access to within the law to amend these provisions to offset all or part of the tax effect of a change of the self declared or employees income, see. However, 4. paragraph thereof must be submitted before the expiry of the time limit for appeal against the tax assessment. Does the Fund receive or association in whole or in part upheld by appeal or the right to apply to the courts, to the same extent any subsequent provisions made to compensate for the alleged alteration. 1. paragraph shall not apply where the change of the self declared or the employees income results in fines after tax kontrolloven.

Paragraph 10. Amendment to the provisions referred to in paragraph 4 or 8 after expiry of the deadlines laid down in paragraph 9 requires permission from the Customs and tax administration. The national tax Board may lay down detailed rules concerning the Customs and tax administration exercise of jurisdiction after 1. PT.

§ 5. In the after section 3 income ascertained pursuant to § 1, nr. 1 and 4, said funds also make deductions for provisions for consolidation of the Fund's capital. The deduction may not exceed 25 per cent of the income in the year made distributions to general interest for shattering or otherwise non-profit purpose, see. section 4, paragraph 1.

(2). In the after section 3 income ascertained pursuant to § 1, nr. 1 and 4, said funds instead of a deduction under paragraph 1 carry out deductions for other provisions that are made according to the requirements in the Royal Charter confirmed. It is a condition that the purpose of the provision is clear from Foundation.

(3). Associations as referred to in § 1, nr. 2, in the after section 3 incremental income deductions for provisions for the consolidation of the Association's assets. However, the deduction may not exceed, as a proportion of the Association's assets corresponding to the percentage point adjustment figure for income year after personal tax Act section 20 is amended in relation to the adjustment rate of the previous income year. The percentage is calculated to one decimal place.

(4). In the calculation of the deduction under paragraph 3 is calculated the value of the Association's assets in accordance with the rules in corporate tax Act section 14, paragraph 2, 1. and 2. paragraphs, and paragraphs 3 to 7.

§ 6. Revenue, as in accordance with § 3, paragraph 2, and section 10 are not to be included for the taxable income shall be deemed to have been used as far as possible to those in sections 4 and 5 handouts and provisions, prior to any part of the income is considered ascertained under section 3 have been used here.

§ 7. (Repealed).

§ 8. In determining the taxable income of those in § 1, nr. 3, the said associations included income from professional activities, interest income and dividend income in accordance with the provisions of section 16 of the Act (A) the equation. Equation section 16 (B) shall apply mutatis mutandis to the here mentioned associations. The taxable income is counted in addition income calculated in accordance with the rules of property law and equity taxation profit profit tax law as well as income as mentioned in kursgevinstloven. This also applies to the profit and loss on conversion and improvement costs, facilities, etc., acquired in the sale of rented premises, without prejudice. depreciation § 39, profits and losses on disposal of goodwill and other intangible assets, subject to article 20. depreciation amount, subject to § 40 of the assessment Act section 16 G and income referred to in sections 9 and 21 of the law of depreciation. In addition, the taxable income is calculated after tax legislation general rules applicable to public limited-liability companies registered with the exceptions to paragraphs 2 and 3 and section 9.

(2). In the statement of income in accordance with paragraph 1 may only be deducted expenses that relate to the income, which is taxable. However, deductions for interest expenses and deductions after tax section 6 shall be made, irrespective of whether the costs or losses not relating to the acquisition of the taxable income.

(3). In § 1, nr. 3, the said associations are taxed by the income from economic activity. The rest of the total income calculated in accordance with paragraphs 1 and 2, by contrast, are taxed only to the extent that it exceeds 200,000 kr in deductions referred to in section 9.

§ 9. In the statement of income under section 8 can the in section 1, nr. 3, the said associations make deduction of transactions as referred to in section 4 (1) and (4) and section 5, paragraph 3, of the basic regulation. (4). section 4, paragraphs 3, 5, 6, 7 and 9, shall apply mutatis mutandis to these associations.


(2). The rule in article 6 shall apply mutatis mutandis to associations as referred to in § 1, nr. 3 with regard to revenues, which are not to be included for the taxable income pursuant to section 8 (3) or section 10.

§ 10. Corporation Tax Act section 13, paragraph 1, no. 2, shall apply mutatis mutandis to foundations and associations governed by this law.

§ 11. Income taxes make up the corporate tax Act section 17 (1), mentioned a percentage of the taxable income.

(2). The rules of the corporate tax Act § 17, paragraphs 2 to 4 shall apply mutatis mutandis to those of this law included funds and associations.

§ 12. Corporation Tax Act section 32 shall apply mutatis mutandis to foundations and associations within the scope of section 1. Foundations and associations not of income taxed in subsidiaries to the extent the income must be added to a company's taxable income after Corporation Tax Act section 32.

§ 13. Of the tax, there shall be provided in accordance with this law, is the property of 13.41%. the municipalities in which the Fund or the Association has run business, see. the provisions of the law on municipal income tax.

§ 14. (Repealed).

§ 15. Corporation Tax Act rules governing equation and collecting shall furthermore apply by analogy to those of this law included funds and associations.

(2). Associations as referred to in § 1, nr. 2 and 3, are not entitled to interest and dividend income in addition to 200,000 USD, can instead of tax return filing statement to that effect. The Association receives income from professional activities, however, must be filed a tax return on this income. The Association has received substantial extraordinary taxable income in the form of profit margins, etc., to be there regardless of the rule in the 1. item lodged a tax return.

(3). Funds, as referred to in § 1, nr. 1, 4, 1) that do not have income from professional activities, and if income incl. tax-exempt dividend income after deduction of interest expenses and administrative costs not exceed 25,000 KR., instead of tax return filing Declaration to that effect, 2) which runs the publicly accessible museums, and who have obtained a permit pursuant to section 4, paragraph 8, for, without limitation, to make any provisions for general interest for shattering or otherwise non-profit cultural purposes, instead of tax return filing statement that the surplus be used solely for the purpose of the Museum , 3) exclusive use of the surplus for that purpose, and where conditions, moreover, justified, of customs and tax administration be authorized to lodge a declaration in lieu of a tax return.

(4). Tax Minister lays down detailed rules on the collection and recovery of taxes from foundations and associations.

section 15 (A). (repealed).

§ 16. (Repealed).

§ 17. (Repealed).

§ 18. (Repealed).

§ 19. (Repealed).

§ 20. (Repealed).

§ 21. (Repealed).

section 21 (A). (repealed).

section 21 (B). (repealed).

section 21 (C). (repealed).

§ 22. Have a foundation or association set aside provisions as mentioned in the Corporation Tax Act, section 3, paragraph 3, of the basic regulation. the same article 3, paragraph 2, and article 1, paragraph 1, no. 6, contingency reserve be used in their entirety to one or more general interest for shattering or otherwise non-profit purposes within 5 years after the end of the income year, provided the basis for tax assessment for the income year in which the Fund or the Association first time taxed after stock tax law. § 4, paragraph 6, 1. paragraph, shall apply mutatis mutandis to provisions as mentioned in 1. paragraph. The same applies to the section 4, paragraph 7, with respect to the extension of the deadline for the application of the provisions.

§ 23. The law shall take effect as from the income year 1987.

§ 24. The law does not apply to the Faroe Islands and Greenland.

The Danish Ministry of taxation, the 14. August 2014 Sevan/Lise Bo Nielsen

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