SolvedDT5909 | Double Taxation Relief Manual: Denmark: treaty summary
From HM Revenue & Customs · Double Taxation Relief Manual
The table summarises the provisions of the treaty in force. Where a percentage rate is shown, this rate is the ‘treaty rate’ and does not reflect taxes chargeable under the domestic law of either state before relief is given under the provisions of the treaty. The ‘treaty rate’ is the maximum rate at which the UK and Denmark are permitted to tax income in the relevant categories under the treaty. Rates chargeable under the domestic law of either state may be higher or lower.
In all cases other conditions for relief (e.g. beneficial ownership) will have to be met before relief is due under the treaty. The text of the treaty itself should be consulted for the full details. The text of the treaty can be found on gov.uk
| Subject | Comments | Article |
|---|---|---|
| Portfolio dividends | 15% | 10 |
| Dividends on direct investments | 0% | 10 |
| Conditions for lower rate on dividends on direct investments | The beneficial owner must be a company which holds directly at least 25% of the issued share capital of the payer | 10 |
| Property income dividends | 15% | 10 |
| Interest | 0% | 11 |
| Royalties | 0% | 12 |
| Government pensions | Taxable only in Denmark unless the individual is a resident, and national of, the UK | 19 |
| Other pensions | Taxable only in the UK unless the individual was previously a resident of Denmark, in which case they are taxable in both countries (Note 1) | 18 |
| Arbitration | Yes | Under the MLI |
Note 1: Credit can be given for any Danish tax charged on the same pension. Where the individual moved to the UK prior to 12 March 1997 and on that date was in receipt of a pension which falls within the scope of Article 18(2), Denmark, under its domestic law, will exempt pension payments up to an amount of DKK200,000 and only charge tax on any excess. It is only the Danish tax on the excess that qualifies for credit relief in the UK.
Danish social security pensions are taxable only in Denmark and are not taxable in the UK.