Repatriation of Profit from Denmark
Repatriation of Profit from DenmarkUpdated on Monday 20th November 2017
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The repatriation of profit from Denmark is the return of the income derived from the country to the country of origin of the legal entity that also has operations in Denmark.
Foreign investors may repatriate capital and income with no impediment. There is no foreign exchange control in Denmark.
One of our Danish lawyers can give you specific information on capital transfers and profit repatriation based on the country of origin of the company.
Profit repatriation options in Denmark
Foreign companies that also derive profits in Denmark may repatriate part of their profits in the form of dividend payments. This may be performed after the specific dividend tax is levied in Denmark. As a general practice, dividend payments on group shares and subsidiaries are exempt from tax whereas those made on portfolio shares are subject to taxation.
Subsidiaries in Denmark may repatriate profits in the form of dividends if:
- there is a tax exemption on the specific dividend payment (double tax treaties);
- the dividend payment is taxed and a foreign tax credit is claimed;
- almost all of the dividend payment is deductible (but not all of it).
Our lawyers Denmark can help you with information on how these particular cases can apply to your business in the country.
The double tax treaties signed by Denmark and other countries help relief the tax burden on foreign companies and individuals deriving income from both of the signatory countries. The tax relief specific to the double tax treaties also applies to the withholding tax on dividends and one of our attorneys in Denmark can give you complete information on how this tax applies.
Taxation in Denmark
The taxation of dividends is of interest for the repatriation of profit from Denmark. However, branches of foreign companies and subsidiaries in the country are also taxed on the income they derive from Denmark, in addition to the tax they pay on dividends.
One of our Danish lawyers can give you further information on taxation in the country.
Contact us for complete legal services and consultancy in tax law matters.