Denmark: Bill amending Corporate Income Tax Act and other tax laws presented to parliament

The main provisions of the bill include the following:

• adjusting the rules for performing a business activity in Denmark by means of a permanent establishment;
• introducing rules on the taxation of commission that banks pass on to customers from Units for Collective Investments in Transferable securities (UCITS);
• introducing the possibility for mutual funds to merge tax free with a public limited company authorised to conduct banking activities;
• adjusting the taxation of foreign pension institutions’ investments in real estate in Denmark;
• amending the thin capitalisation rules; adjusting the rules for refunding of VAT on reimbursed energy taxes; adjusting the rules for VAT exemption for independent groups;
• clarifying the rules for taxation of severance payments;
• introducing rules to prevent conversion of taxable gains into tax-free equity gains.