Reduced withholding tax rates

On 29 April 2008, the parliament adopted an amendment to the Danish tax rules on withholding tax on dividends, royalties, interest, and capital gains on debt claims (premium) (L 31B). The bill has been put forward in order to bring the Danish withholding tax rules into conformity with EC law.

Under Sec. 2 of the Corporate Income Tax Law, and Sec. 2 of the Source Tax Law, the Danish withholding tax rate on dividends is 28%. The new bill reduces the rate to 15%, …