1. GMN Tax Conference 2015 Verona
Presentation from Denmark
Søren Larsen
Baagøe Schou

2. Johan and Maria, New Structure
Splitting the Group
Funding new activities
New activities, R&D
Purchase of employee shares
Share option arrangement
Transfer of shares to son

3. Splitting the Group Splitting a Company
Legislation (Corporate and Tax)
With or without permission from Tax authorities
Consequences
Valuation
Acceptance from Tax authorities

4. Funding new activities
Taxation on Companies gains and losses from Shares
Share hold >/= 10%
Tax-free
Share hold < 10%
Listed Companies
Unlisted Companies

5. New Activities, R&D Subsidiary Flexibility Joint Taxation
Divestment – Tax free
Liabilities – risk reduction
Dividends and contributions – Tax free
R&D costs
Deductable
If losses (negative taxable income)
Carry forward
Tax credit to be granted from Danish Tax Authorities max. DKK 1,25 million (from 2015 the calculated tax of up to DKK 25 million)

6. Shares owned by senior employee
Lending out money to shareholders is not allowed
Buying own Shares, reducing Share capital and reserves
No Tax consequences for the buyer
For seller taxation as for dividends, 42%
The taxable gain can be reduced with the purchase price, provided that a permission are recieved from the Tax authorities

7. Share Options
Tax favorable general employee share agreements are abolished from 2012.
Individual agreements are still possible.
Options and warrants.
Taxation at exercise.
High Taxation as personal income (up to approx. 55 %) on gain (market value at exercise time reduced with the employee’s payment)
Deductable as salary in the Company
A-B share model (valuation – future dividends)
Value at exercise time

8. Inheritance Tax etc. Close family relation, 15%
Gain on Shares, taxation 42%
Tax succession, conditions
More than 50% assets/income from business activity (includes not rented out business estates)
Consolidated account
Specific investments are categorized as business activities (Sun and Wind power installations)
Valuation – favorable/lenient calculation abolished
Market value
Deduction for Tax liability, 22% of calculated gain
The only payable Tax are death/gift duties, if succession