CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Denmark To Remove Special Tax Rules For Banks

Denmark To Remove Special Tax Rules For Banks

by Ulrika Lomas, Tax-News.com, Brussels

10 May 2019


On May 2, 2019, the Danish Tax Ministry announced that banks' right to deduct hybrid core capital for tax purposes will be removed.

Hybrid core capital is capital that exhibits elements of both equity and debt, and the Danish Government introduced the special deduction for such capital during the financial crisis to support the banking sector.

However, Denmark has decided to rescind this special deduction to ensure that its tax rules do not breach European Union laws on state aid, given that the capital position of Denmark's banks has recovered since the crisis.

"The special right of deduction, according to the European Commission, may lead to a special treatment by the financial sector which has raised the issue of state aid," the ministry stated. "In order to ensure that the rules are in accordance with the state aid rules, the Commission has asked Denmark to amend the law."

According to the ministry, the cancellation of the special deduction will increase tax revenue by DKK175m (USD26m) in 2019, and DKK350m per year thereafter.

TAGS: tax | European Commission | Denmark | law | banking | transfer pricing | Europe | Tax | BEPS

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »