On 12 July 2019, the Danish Tax Authority has published a notice (SKM2019.374.SKTST) which establishes a new practice for the importance of whether a transfer pricing documentation in its entirety is available at the time of tax return. The practice change is a consequence of the Supreme Court’s judgment in the Microsoft case, but is only of significance for income years commenced before 1 January 2019.
The changes to the Tax Control Act codified the requirement to prepare the transfer pricing documentation by the deadline (notification form). Otherwise, an estimate of the controlled transactions for that income year can be made. The amended Tax Control Act entered into force on 1 January 2019 and generally applies to the income year 2018, but does not apply to the income year 2018 for legal persons who themselves have to estimate themselves for the year 2018.
