Shares in foreign repositories(Taxwatch (Tax news in english))
18-11-2009 10:53
Af
Stefan Bjerregaard
The Danish tax reform has led to changes in the taxation of securities.
One of the changes has great importance to Danish individual investors, who own publicly traded shares or investment certificates in foreign deposits. As of 2010, tax deductions can only be obtained from losses on equity if the Danish tax authorities are aware of the shareholdings. Today, the Danish tax authorities do not automatically receive information on equities traded through foreign securities dealers.
Reporting of shareholdings to the Danish tax authorities cannot wait until the shares are sold. Reporting must be done before the tax return deadline for the acquisition year. For equity and investment certificates purchased before 1st January 2010, reporting should be done by 1st May or 1st July 2011. The date depends on whether you have received a pre-printed annual tax return or not. It will be possible to submit data electronically via
www.skat.dk. The data can also be submitted by the custodian bank, if such service is provided.
The purpose of the new rules is to ensure that Danish investors do not exclusively include their foreign shares on the Danish tax returns when losses occur.
Questions concerning the above can be addressed to Stefan Bjerregaard, sbs@bdo.dk
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