OrbitaxOrbitax

New rules on thin capitalization and withholding tax adopted

|Approved Changes| Denmark
 Denmark



On 6 April 2006, the Danish Parliament adopted bill L 116 on new rules on thin capitalization and on withholding tax to cover debt financing by equity funds.

The requirement that the related company is treated as a separate entity for tax purposes is abolished. Consequently, general partnerships, limited partnerships and any other entity disregarded for tax pur…



Continue Reading