Investing in Denmark

Bergenfelt – Tax Consulting Services is managed by Kjeld Bergenfelt, who is respected as a leading capacity with more than 35 years of experience within important and highly complex areas of tax law. His areas of expertise includes taxation of pension funds, banks, insurance companies, mutual funds, investment companies, foundations and financial instruments.

In addition, Kjeld has lectured on tax law in numerous years and has authored books on the above topics.

Kjeld Bergenfelt is referred in International Tax Review 2010 (international tax firm ranking) in connection with tax advice to financial institutions, where Kjeld is noted for his capital markets expertise in particular.

Professional experience
2013 –             Bergenfelt, Tax Consulting Services
2012 – 2013: Partner, CORIT Advisory P/S
1983 – 2012: Deloitte, Copenhagen, Denmark.
1976 – 1983  Danish Ministry of Taxes
1979 – 1987: Lecturer on civil Law at Copenhagen Business School
1992 – 2007: Lecturer on tax Laws at Copenhagen Business School

TYPES OF CONSULTING SERVICES

Business in Denmark 
We are offering consulting services in connection with establishing a business in Denmark, including setting up a holding company in Denmark.

Financial institutions, domiciled abroad
Besides, we have extensive experience as regards foreign banks, leasing- and factoring companies, insurance companies and trusts, which are marketing their financial products in Denmark (e.g. certificates in mutual funds).

Restructuring of Danish companies and corporate actions
We are also offering tax consulting services is in connection with mergers, increase (or decrease) of share capital, “split ” and other corporate actions.

Shares, investment certificates, pension schemes, real estate, etc.
We provide advice on the taxation of income from investments originating from Danish sources – such as interest, dividends and capital gains.

Shares and bonds/loans
Foreign shareholders are normally limited liable to tax on dividends from Danish companies. However, exceptions applies here, for example as regards dividends from to a foreign parent company.

Normally gain on shares in Danish companies are exempted form Danish tax. However, in some situations proceeds from the sale of shares sales will become qualified as taxable dividends. This could be the case when shares are sold from one company to an affiliated company.

Interest are normally exempted from tax, however also here applies exeptions, e.g. as regards interest in intercompany relations.

Danish mutual funds
Danish mutual funds are normally covered by the UCITS Directives, however with some exceptions.
Normally dividends and capital gains on certificates in Danish mutual are treated as yield from shares, i.e. that dividends are normally subject to withholding tax (with respect of our double taxation agreements). The exact tax situation is depending on the individual type of fund. Thus there is not any withholding tax on dividends from (“pure”) bondbased mutual funds.

Real Estate
Gains from a sale of immovable property is subject to limited tax liability to Denmark. For individuals, this applies only if specific conditions are met. Statement of profit and loss are typically complex and usually require tax assistance.

Binding ruling
In many situations, there is uncertainty about the scope of the tax consequences of a proposed disposition, for example in connection with sale of a business. Typically, it is recommended to obtain so-called binding ruling on the tax consequences of the transaction.

We have extensive experience in obtaining binding response, including the preparation of the case and any negotiations with the tax authorities.

Complaints and reimbursement of costs
We have specialised in conducting complaints cases at the Tax Appeals Board and the National Tax Tribunal, for example as regards corporate and shareholder tax, property gains tax, etc.

Individuals are entitled to full or partial reimbursement of the costs associated with the keeping of complaints about tax etc.

Companies and foundations are not entitled to compensation, but instead the right to deduct the cost.