Share-Based Incentive Schemes - Increased Fines For Non-Compliance With Reporting Requirements

A new Danish tax Act imposes increased fines for non-compliance with the reporting requirements for share-based incentive schemes.

Share-based incentive schemes and reporting requirements

When share-based incentives are issued to employees in Denmark, the employer company is, as a general rule, required to report certain information to the Danish tax authorities.

Increased fines

A new tax Act has recently been adopted by the Danish Parliament. It signals an increased focus on reporting obligations for employer companies.

Under the new Act, the fines payable if the reporting obligations are not complied with depend on the number of employees in the company as follows: