DenmarkAccounting and Audit
December 1997
Denmark tightens transfer pricing legislation
On 14 November 1997 the Danish Minister of Taxation proposed a bill on increased documentation requirements in connection with cross-border intra-group trade.
The bill affects multinational enterprises doing business in Denmark. The existing Danish transfer pricing legislation is more than ten years old and is perceived as following behind developments in the global economy, international trading and world-wide fiscal practice.
The bill entails that
1. As from 1998 companies must provide information as to the nature and extent of intra-group transactions in their tax returns.
2. As from 1999 companies must prepare and keep written documentation for use in the tax authorities' assessment of whet-her prices and terms have been fixed on an arm's length basis, i.e. on normal business terms.
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