Denmark Tax: Change on Withholding Tax Requirements
Denmark previously exempted dividends from withholding tax if paid to a parent company resident in an EU Member State or resident in a country with which Denmark has concluded a tax treaty if the recipient held at least 10% of the share capital for at least one year. The one-year holding requirement has been abolished as from 1 January 2010, so that nonresident companies are exempt from Danish withholding tax on dividends on subsidiary shares if Danish taxation must be reduced under the EC Parent-Subsidiary Directive or an applicable tax treaty.
