The revised rules, which will apply from the 2025 income year, are expected to exempt at least 1,500 companies that submitted documentation for the 2022 fiscal year.
Denmark’s Parliament has passed amendments to Sections 39 and 40 of the Danish Tax Control Act to simplify transfer pricing compliance for Danish taxpayers.
This follows a draft bill introduced on 9 April 2025, which proposes further changes to raise transfer pricing documentation thresholds and introduce new exemptions from the documentation requirements.
The revised rules, which will apply from the 2025 income year, are expected to exempt at least 1,500 companies that submitted documentation for the 2022 fiscal year.
New thresholds and exemptions for transfer pricing documentation requirements
The bill implements exemptions from transfer pricing documentation requirements based on the volume of a taxpayer’s controlled transactions. Taxpayers with total controlled transactions under DKK 5 million and intercompany balances below DKK 50 million in an income year will generally be exempted.
However, documentation remains mandatory for:
- Controlled transactions involving intangible assets under section 40 of the Danish Depreciation Act
- Transactions with non-EU/EEA jurisdictions that do not exchange information with the Danish tax authorities.
The bill introduces exemptions for certain equity-related transactions, including dividend distributions, capital contributions, minor passive capital investments, and other small transactions.
It also raises the thresholds for revenue and balance sheet totals. Taxpayers, together with affiliated global group entities, would only need to meet limited documentation requirements if they have fewer than 250 employees and either (i) annual revenue below DKK 391 million (up from DKK 250 million) or (ii) a balance sheet total under DKK 195 million (up from DKK 125 million). The full-time equivalent (FTE) threshold of DKK 250 million has not been changed.
The new rules also eliminate the Danish tax agency’s authority to request auditor statements.
Automatic extension for TP documentation aligned with tax return deadline
The law now automatically extends the 60-day transfer pricing documentation deadline if the corporate tax return deadline is extended. Separate extension requests for both corporate tax returns and the transfer pricing documentation deadlines are no longer required.
