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The Danish Bankers Association: analysis by the Ministry of Taxation paves the way for new tax regulations

6 November 2015

Press release
The Danish Bankers Association believes that the analysis of tax regulations for investment institutions and their investors conducted by the Danish Ministry of Taxation is a good starting point for further discussion on how growth potential in Danish investment management can be released.
 
Denmark is of the highest standard internationally when it comes to investment management. Unfortunately, the current Danish tax regulations prevent Danish investment management from becoming an export good; thereby creating jobs in Denmark and bringing jobs currently placed abroad back to Denmark.
 
“I am delighted that several solution models that can contribute to ensuring equal competitive conditions for Danish and foreign investment managers have been outlined in the Ministry of Taxation’s analysis of taxation rules for investment institutions and their investors,” says Ulrik Nødgaard, Chief Executive Officer at the Danish Bankers Association.
 
“The analysis will be a good starting point for further political discussions on how we can realise growth potential in Danish investment management,” Ulrik Nødgaard continues.
 

A solution can be found

For a long time and under varying governments, the Danish Bankers Association and the Danish Investment Fund Association (IFB) have been promised an analysis of the possibilities to release this potential. This was expressed when the previous SR cabinet (Social Democrats and Social Liberal Party) together with the Danish Liberal Party in the Growth Plan 2014 wrote: “The government and the Liberal party look favourably on tackling the issues that the analysis deals with.”
 
The Ministry of Taxation assesses the revenue loss in several of the outlined solution models to be under DKK 30 million per year. The ministry is worried that changing the rules will increase the risk of private equity funds being able to use a new taxation model to minimize their foreign taxes.
 
“At the Danish Bankers Association we believe that there is a solution so that a potentially new taxation model would not be able to be used inadvertently, but is solely targeted towards increased export of Danish investment management,” says Ulrik Nødgaard and continues:
 
“I would like to acknowledge the ministry’s analysis. We’re ready to roll up our sleeves and we are looking forward to entering constructive discussions so that a good political solution can be presented in advance of the upcoming negotiations concerning tax policy in spring 2016.” 
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