Guide to m&a tax 2022

d. Cash repatriation
Cash can be repatriated through e.g. dividend distributions or interest payments.
The domestic Danish dividend WHT rate is 27% on dividend payments to non-Danish corporate investors. However, the 27% WHT rate may be reduced to 0% at source 
provided that the following conditions are met:
• 
The recipient of the dividend holds at least 10% of the share capital of the dividend distributing Danish company,
• 
The recipient is a corporate entity/pension fund and the beneficial owner of the dividend; and
• 
The recipient qualifies for protection under 1) the EU Parent Subsidiary Directive (90/435/EC); or 2) a jurisdiction with which Denmark has entered into a DTT that 
provides for a reduced rate of dividend WHT (i.e. the DTT provides for a dividend WHT rate of less than 27%).
Additionally, the WHT may be lowered for corporate investors following application to the Danish Tax Authorities to 22% or 15% depending on where the investor is 
located, and the WHT may be lowered following a double tax treaty.
Dividends may only be distributed out of the distributable reserves.
For a Danish corporation as investor with a shareholding of at least 10%, the dividend is exempt for CIT purposes.
Interest payments from a Danish company to a foreign company should not be subject to Danish interest WHT provided that the foreign company can be deemed the 
beneficial owner of the interest.
If the foreign company cannot be deemed the beneficial owner of the interest, Danish WHT should be withheld at source with a rate of 22% unless it can be 
documented that
• 
The UBOs are EU and/or double tax treaty residents,
• 
that these UBOs have ultimately received the funds; and
• 
the respective UBOs are entitled to treaty benefits under the relevant double tax treaty (or are comprised by the EU Interest-Royalty Directive). If this cannot be 
documented, the UBOs may be able to reclaim any Danish WHT fully or partly depending on the specific tax status of the investors.
26 
Denmark
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TAXAND GLOBAL GUIDE TO M&A TAX 2022
9. OTHER GENERAL INTERNATIONAL TAX CONSIDERATIONS