European Commission insists on tax reform in Denmark.

05.02.2013

A provision of tax law of Denmark according to which if the citizen wants to move to another country for living, he is obliged to pay the corporate rights tax, and not at once but at the moment of getting any kind of investment income (for example, income from selling shares or getting dividends) attracted the attention of the European Commission.

EU considers such situation as an infringement of the economic interests of the Danes who want to change the country of residence and as an obstacle on the way of freedom of movement of the Europeans’ capital.

If Denmark fails to reform their tax laws in the nearest future, the European Commission reserves the right to apply to European Court.

On the basis of   www.ec.europa.eu

Expert’s opinion

“Danish holdings which were popular some years ago have lost their positions for the last few years. Changes in legislation concerning limited partnerships which used to be so attractive changed the attitude to Danish companies.

Of course Denmark being so stainless, with unsullied reputation is interesting for huge holding structures. And for a current moment we can see the interest of the European commission to the infringement of the residents’ rights.

So, the stated decided not to let citizens move to another countries by imposing tax barriers.

And although there are not so many people wiling to leave Denmark and change the location we will see if the government will compromise.”

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)