Guide to m&a tax 2022

b. Tax attributes
• 
Tax losses carried forward
In general, losses may be carried forward indefinitely to reduce future taxable income, both income from operations and capital gains (however, certain capital losses 
may only be used against capital gains from the same source).
Losses can be carried forward and can offset future taxable income by a basic amount (in 2022: DKK8,872,500). A remaining loss exceeding the basic amount may 
reduce the remaining taxable income by 60%. Any loss that cannot be utilised may be carried forward.
On a change of ownership, a tax loss carried forward may become restricted.
• 
Loss carry back
Denmark does not have any carry back rules in the ordinary corporate tax regime.
• 
Depreciation
As for depreciable assets (such as real estate), they may involve a deferred tax liability for Target. If the tax value of the asset (i.e. the assets value after depreciations 
in accordance with the Danish tax law) is lower than the asset’s actual value reflected in the financial statements (i.e. the carrying amount), then the asset will have a 
deferred tax liability.
c. Tax Grouping
All Danish corporations within a group are subject to mandatory joint taxation. Any permanent establishments and Danish real estate held by foreign controlled 
corporations are also subject to mandatory joint taxation.
Voluntary (international) joint taxation is also an option for foreign corporations, etc, who are part of a group with Danish corporations.
Where a target company is part of a tax group with the seller, the company will exit the seller’s joint taxation when the control of the company is transferred to the 
buyer. In a sales transaction, the company is subject to mandatory joint taxation with the seller until closing, and the joint taxation between the company and the seller 
ceases as per closing.
No later than one month after closing (i.e. the exit from the seller’s joint taxation), the seller must ensure that the seller’s administration company through the Danish 
Tax Agency’s online self-service facility (the E-tax corporate income tax portal) notifies the Danish Tax Agency and documents i) the date of the company’s exit from 
the seller’s joint taxation, ii) the period in which the company’s income is to be included in the seller’s joint taxation income, and iii) the reason for leaving the seller’s 
joint taxation.
If, as a result of the transaction, the company enters a Danish joint tax group with the buyer, the administration company of the buyer must similarly notify the 
Danish Tax Agency no later than one month after closing of the above mentioned details, and the seller’s administration company must confirm and approve 
the notified change.
8 
Denmark
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TAXAND GLOBAL GUIDE TO M&A TAX 2022