Tax Law

Focused advice, planning and litigation in the fields of Danish and international tax law and in relation to questions regarding VAT, customs duties and indirect taxes. 
Kromann Reumert's tax law group provides focused advice, planning and litigation in the fields of Danish and international tax law and in relation to questions regarding VAT, customs duties and indirect taxes.

In close cooperation with Kromann Reumert's other practice groups and external partners, we combine leading tax law expertise with strategic and commercial insight to create innovative and integrated solutions.

We place a high priority on research and development and contribute regularly - as members, authors, teachers and lecturers - to Danish and international tax law associations.

Our tax expertise areas include:

  • Taxation in connection with business formation and restructuring
  • Tax issues relating to the purchase and sale of businesses and real estate 
  • Reorganisation
  • Succession planning 
  • Group taxation and joint taxation
  • Inward and outward secondment of employees
  • Tax litigation
  • Taxation of individuals
  • Financial products

FINANCIAL PRODUCTS

In the development, offering, purchase and sale of financial products, the tax treatment of such products often plays a very significant role.

The tax treatment of financial products is very complicated, and very often - especially in connection with foreign financial products - Danish tax legislation has not been taken into consideration at all.

Kromann Reumert's tax law group has huge experience in advising on financial products.

We provide advice on the taxation of all types of financial products and have considerable experience in the development and tax optimisation of financial products.

FORMATION AND START-UP OF BUSINESSES

In connection with the formation and start-up of a new business, there are several legal issues to consider, including in relation to direct and indirect taxes.

Among other things, it is of essential importance to the future success of the business that from the very beginning the owners choose an appropriate ownership structure taking into consideration the future development of the business.

Furthermore, it is important that right from the beginning the business activities are organised in compliance with current rules and regulations, including in respect of registration, notification and payment of direct and indirect taxes, etc.

Such considerations should also be given to the development of new business areas, to the admission of new investors, etc. in growth businesses, to the set-up of joint ventures and investment projects, etc.

Kromann Reumert provides advice to private entrepreneurs and start-ups as well as to well-established Danish and international businesses on all legal matters in connection with the formation and start-up of new businesses and business areas.

Among other things, our tax law group advises on:

  • The choice of business form and ownership structure
  • Organisation of the business and its activities in a way allowing the business to comply with current tax rules and regulations without incurring any needless costs

Together with Kromann Reumert's other groups we assist in drawing up all relevant documents relating to e.g. company and employment law matters.

We also assist in:

  • Drawing up relevant contracts, collective agreements, etc.
  • Applications for registration with public authorities in order to provide the business with the best possible framework for its future operation and development

GROUP TAXATION

Companies and groups of companies must navigate through more and more complex tax rules which are subject to regular amendments.

The tax consequences and opportunities are therefore a central parameter when deciding on a vast number of key issues. For instance in connection with restructuring, adjustment of capital structure and start-up of new activities.

Kromann Reumert's tax law group has many years of experience in advising on all aspects of group taxation.

We assist companies and groups with tax advice relating to:

  • Joint taxation
  • Holding companies
  • Restructuring
  • Company formation
  • Financing structure
  • Reorganisation
  • Capital injection
  • Tax planning

INTERNATIONAL TAX LAW

In a globalised world businesses are more and more often required to relate to the tax law of more than one country at the same time. In such situations it is of vital importance that the businesses respond to the challenges and opportunities involved.

Our tax law group has wide experience in advising on international tax issues.


We provide tax advice on all types of cross-border questions and transactions, including when:

  • Danish companies set up subsidiaries abroad
  • Foreign companies set up subsidiaries in Denmark

PURCHASE AND SALE OF BUSINESSES

The purchase or sale of a business may consist in the purchase or sale of either ownership shares or assets and liabilities in the business.

The transactions may be on a purely national basis, or they may be international transactions. Such transactions are often of high complexity.


We have many years of experience in advising on the purchase and sale of businesses.

Our clients are both industrial and financial buyers and sellers of businesses. 

Our assistance includes: 


  • Tax trimming for sales purposes 
  • Tax due diligence of the target company 
  • Organisation of future group structure 
  • Tax organisation of financing structure 
  • Preparation of notifications and applications to the tax authorities 
  • Other tax advice in connection with the purchase and sale of businesses

REAL ESTATE

Several tax-related problems may arise when you build, buy, sell, rent, manage, use or demolish real estate.

Danish and foreign businesses setting up real-estate projects and companies, etc., must always be sure to choose the optimum structure in terms of direct and indirect taxes, thereby eliminating the risk of unexpected tax consequences which may negatively affect the return and the budgets.

Kromann Reumert's tax law group provides advice to companies, businesses and individuals on taxation of real estate. We provide advice in connection with planned transactions and projects and in connection with subsequent questions and disputes with the tax authorities or others.

Our areas of advice include:

  • Organisation of real-estate projects and companies
  • Financing of real estate, and amortisation and depreciation for tax purposes; taxation of profit from sale of real estate, including taxation of permanent and summer residences, parental purchase of homes for their children, compulsory acquisition, reinvestment of profits, etc.
  • Real estate tax (public land assessment value, land tax, service charge)
  • Tax on the public land assessment value of Danish and foreign real estate
  • VAT on the building, purchase, sale, renting and administration of real estate
  • Registration fee

REORGANISATION

Where a company, a business or an individual has incurred a major loss or has considerable debts, it will often be relevant to investigate the possibility of recapitalisation or reorganisation.

Such reorganisation may e.g. be in the form of debt relief (compulsory or voluntary composition, debt restructuring, etc.), capital contributions, including debt conversion and other kinds of capital adjustment, and new loans, etc.

Besides, it may be necessary in the circumstances to close down or sell off activities or to dissolve a company following a liquidation or bankruptcy.

In each individual case it is important for the affected business or individual that the recapitalisation or reorganisation is carried out in the most appropriate way, also in terms of tax law. It is of significant importance that tax losses and loss deductions are secured in the best possible way and that no negative tax consequences will occur in the form of e.g. taxation of capital gains, limitation of tax relief on interest, etc.

We assist Danish and foreign businesses and their owners in assessing the tax consequences of a reorganisation or recapitalisation.

We advise on:

  • The choice of mode
  • The specific pitfalls and opportunities
  • Carrying out reorganisations and recapitalisations

We prepare the relevant documents and handle the contact with creditors, authorities, etc.

We also assist in assessing the tax situation in connection with bankruptcies and other insolvency proceedings.

SHARE-BASED SALARY AND INCENTIVE SCHEMES

Danish and foreign companies and institutions increasingly use incentive schemes as part of the employees’ remuneration. An incentive scheme may consist of e.g. bonus, shares, warrants, options, convertible bonds, stock appreciation rights, restricted stock units, matching shares, etc.

The tax treatment of employees and employers in incentive schemes has significant influence on the structuring of incentive schemes.

Kromann Reumert’s tax law group has considerable experience in advising on the tax treatment of various incentive schemes.

We assist employers with advice on the tax treatment of incentive schemes which they wish to implement in Denmark, i.e. purely national schemes. By virtue of our very strong international relations, we also advise on the tax treatment of a vast number of different schemes set up abroad and intended to be introduced in Danish subsidiaries.

We advises on the challenges caused by incentive schemes relating to:

  • Tax law
  • Company law
  • Securities law
  • Employment law

Besides, we assist in preparing and implementing incentive schemes. Further, we advise employers and employees on the tax treatment of share-based salary in connection with inward and outward secondments.

SUCCESSION

When considering a transfer of ownership of a business, it is important for the owner to focus on the various aspects and considerations involved in succession planning.

The decisions particularly required relate to: the future owners; transfer in whole or in part; financing of the transfer; and, not least, the future management of the business.

Planning the succession well in advance will ensure that the business is carried on in the most appropriate way.

We have broad experience in all areas of succession planning, including:


  • Tax considerations
  • Transfer as gift or inheritance
  • Valuation of the business
  • Financing of the transfer, etc. 

We assist with competent and confident advice and guidance from start to finish, irrespective of whether you wish for the transfer of ownership to occur before or after your passing, and whether you want the successor to be a family member or not.

TAX LITIGATION

Kromann Reumert's tax law group undertakes specialist work in the field of tax litigation. We have unrivalled experience in the handling of tax cases in ordinary courts, the National Tax Tribunal and local tax appeals tribunals, and we represent taxpayers in cases before the National Tax Board and in other negotiations with the authorities.

We appear in tax cases involving the entire area of tax law, including;

  • Company law
  • Taxation of individuals
  • VAT
  • Customs and excise duties
  • Tax criminal law

Our experience also extends to:

  • International tax cases
  • Transfer pricing
  • Mutual agreement procedures (MAP and APA)
  • Litigation before the European Court of Justice


We will always assess the prospects of success in a tax case and weigh the expected costs and result. 


We will devise a clear strategy and work intensively to collect evidence, define and consider all relevant legal problems – trying wherever possible to avoid actual litigation before the courts, etc., e.g. when applying for reopening of a case or reversal of a decision.

TAXATION OF INDIVIDUALS IN BUSINESSES

Employees are the most important resource for any business. In order to attract and retain competent and committed employees, the business must proactively integrate tax in its HR strategy.

This applies to employee benefits such as telephone, broadband, computer, car, education, health schemes, incentive schemes such as share-based salary and employee bonds, inward and outward secondment of employees. In addition, the business must keep track of e.g. withholding and reporting requirements.

There are many opportunities – and many challenges. Tax rules and the way they interact with e.g. employment law are complex and constantly subject to change. Errors may prove costly, both in terms of money and in terms of lost employees. And when you find out that you could have done better, it is too late.

Kromann Reumert's tax law group advises on all aspects of taxation of individuals in businesses.

We advise on:

  • The specific tax questions continually arising in the day-to-day operation of a business
  • Major strategic HR decisions, and we develop and implement solutions tailored to the requirements of each individual business

VAT, CUSTOMS DUTIES AND INDIRECT TAXES

VAT, customs duties and indirect taxes play an ever increasing role for Danish and foreign businesses and may amount to significant expenses.

However, it is also an area affected by constant changes and adaptations to the already complex legislation and requiring a thorough knowledge of e.g. Community law.

In connection with the start-up of, and engagement in, new activities and in connection with the day-to-day operation it is therefore relevant for all businesses to ensure that they comply with current rules and regulations without cheating themselves, their customers or business partners.

We provide general advice on VAT, customs duties and indirect taxes.


Our tax law group assists businesses in ensuring that they comply with current rules and regulations and in reviewing contemplated transactions and ongoing activities in order for them to be organised in a proper and appropriate manner.

Our areas of advice include:

  • VAT in connection with the purchase and sale of businesses
  • VAT on the building, purchase, sale, renting and administration of real estate 
  • VAT on financial transactions
  • VAT and other indirect taxes in connection with the start-up of a business
  • Optimisation of corporate structure
  • VAT, customs duties and indirect taxes in connection with international trade
  • Energy taxes and excise duties
  • Handling of disputes with the tax authorities relating to VAT, customs duties and indirect taxes

Contacts within Tax Law