Denmark: Country-by-Country Reporting

Denmark: Country-by-Country Reporting

The Danish government on 18 September 2015 issued a legislative proposal to amend the current tax law, and provide measures that would enhance the Danish transfer pricing documentation requirements and include country-by-country (CbC) reporting. The proposal suggests that multinational groups, when the ultimate parent company is a resident in Denmark, would be required to make CbC reporting submissions. However, the CbC reporting also could affect foreign group entities that are residents in Denmark if certain conditions are met.


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The new Danish proposal is generally in line with the CbC reporting plan, proposed by the OECD in June 2015. The proposed structure and requirements of the new documentation standards are similar to the current transfer pricing requirements in Denmark; however, additional requirements are expected to be introduced with respect to tax agreements, intangible assets, and financing. These new reporting requirements would be implemented by means of a change to a Danish executive order concerning documentation relating to the pricing of controlled transactions. Previously, any changes to the executive order were subject to approval by the Skatterådet (Danish tax assessment council); however, as proposed, this approval would no longer be required. 

Reporting rules

For CbC reporting, it is proposed that all Danish multinational groups with a consolidated turnover of at least DKK 5.6 billion (approximately U.S. $ 839 million) would be required to file a CbC report. The CbC report would then be made available to all countries where the group operates (i.e., through its subsidiaries and / or permanent establishments). If the ultimate parent company of the group were a tax resident in Denmark, the CbC report would have to be submitted to the Danish tax authorities. Furthermore, it is proposed that other subsidiaries in Denmark or foreign-based groups would have to submit the CbC report if certain conditions are met. These conditions would apply if:

  • The ultimate parent company is not required to file a CbC report in the jurisdiction where it is “fiscally resident” or
  • The ultimate parent company is a resident in a jurisdiction that has an agreement for the exchange of information with Denmark, but has not yet signed a specific agreement for the automatic exchange of CbC reports with Denmark, or
  • There are other measures preventing the automatic exchange of information

KPMG observation

Entities that form part of a group and that are subject to the Danish documentation requirements need to consider preparing for new changes in the documentation structure and the additional content requirements. Furthermore, groups whose ultimate parent company is a resident in Denmark and have a turnover exceeding DKK 5.6 billion need to be ready to file CbC reports.

For more information, contact a tax professional with KPMG’s Global Transfer Pricing Services group in Denmark, with the KPMG member firm in Denmark, KPMG Acor Tax:

Simon K. Schaadt | +45 5374 7044 |

Henrik Lund |+45 5374 7066 | 

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