The general rules below apply to investors who are subject to full tax liability in Denmark and domiciled in Denmark for tax purposes and investors liable for tax on pension investment returns.
The taxation of dividends depends on the individual investor's situation. Investors who are in doubt about their tax positions should seek individualised advice.
Individuals
Individuals must include dividends received under share income. For 2010 share income up to DKK 48.300 (2010) is taxed at a rate of 28 per cent. Share income exceeding DKK 48.300 (2010) is taxed at a rate of 42 per cent. Unused threshold amounts will be transfer between spouses.
When Danske Bank pays dividends, we withhold 28 per cent in tax. Dividend tax withheld on income below the lower limit (DKK 48.300, or DKK 96,600 for couples) is the final tax. This means that it cannot be set off against the total amount of payable tax.
Companies
Companies that owns less than 10 per cent of the share capital in Danske Bank A/S shall include all dividend received in their taxable income.
We withhold 25 per cent in dividend tax on dividend payments to companies, and the amount is included in the company's tax on account after a deduction.
Investors liable to tax on pension investment returns
Dividends are included in the tax base for the tax on pension investment returns. Pension investment returns are taxed at a rate of 15 per cent on the basis of an annual mark-to-market valuation.
We do not withhold dividend tax when we pay dividends into pension custody accounts.
International investors
Dividends payable to investors domiciled outside Denmark for tax purposes are taxed at 28 per cent in Denmark. The Danish dividend tax may be reduced if a double-taxation treaty exists between Denmark and the country in which the investor is domiciled for tax purposes. International investors can claim a refund from the Danish tax authorities of excess tax paid in Denmark.
The dividend tax levied in the investor's country of domicile depends on the country's national tax rules.
Last updated on 1 January 2010