DENMARK Law and Practice Contributed by: Morten Krogsgaard and Lennart Meyer Østenfjeld, Moalem Weitemeyer
months prior to the commencement of insol- vency proceedings (or two years if made to a related party) if created or perfected post- creation of the indebtedness so secured; or • fraudulent preferential treatment: preferential treatment of creditors without any time bar- ring. In these circumstances, certain defences may be available. These are as follows. • Related parties extended periods: for pay- ments to related parties within these extend- ed periods, if it can be proven that the pay- ment transaction was or should be deemed to be an ordinary payment transaction. • Fraudulent preferential treatment: if it can be proven that the obligor was not and did not become insolvent as a result of the transac- tion or that the beneficiary did not know or should not have known about the obligor’s insolvency and the circumstances causing the transaction to be fraudulent. In case of voidance under these conditions: • return of benefit: the beneficiary will return the benefit received, not exceeding the loss of the estate; or • damages: in case of fraudulent preferential treatment, damages are payable in line with Danish law.
where stamp tax or registration fees may be required. Mortgages For mortgage deeds, a registration fee is pay- able upon filing for registration. This fee con- sists of a fixed amount of DKK1,850 (movables and floating charge) or DKK1,825 (real property) deed and a variable fee of 1.50% (movables and floating charge) or 1.45% (real property) of the agreed secured amount. Court Fees In the event of legal proceedings for judgment or enforcement, a court fee will be payable at the applicable rates at the time. 8.2 Withholding Tax/Qualifying Lender Concepts Withholdings on Interest In general, no deduction or withholding for or on account of taxes will be required to be made from the payment of interest. Dividends In respect of share pledges, the exemption of withholding tax on distributions of dividends, rights, redemption monies and liquidation pro- ceeds is subject to a participation taxation regime requiring a minimum holding of 10% or more for foreign entities. For holdings below 10%, withholding tax may be reclaimed for a final tax rate of zero, provided the pledgee is a resident in a jurisdiction subject to a tax infor- mation exchange obligation (including those included in a double tax treaty with Denmark or a multilateral treaty on the information exchange) with Denmark.
8. Tax Issues 8.1 Stamp Taxes Stamp Tax in the Danish Market
In the Danish market, stamp tax is generally not applicable to most financial transactions, includ- ing loan agreements and other financing docu- ments. However, there are specific instances
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