On 9 June 2018 Denmark adopted Law No. 725 of 8 June 2018 provides for amendments to the permanent establishment (PE) rules with respect to investments made in Denmark through transparent entities. The amendment excludes foreign investors making passive investments in Denmark through a transparent entity from being deemed as having a PE in Denmark, which may be the case under the prior rules. However, foreign investors that also carry on a business in Denmark or are related to entities that carry on a business in Denmark are not excluded under the new provisions.

The Law was adopted by the parliament on 1 June 2018 and applies from 1 July 2018.