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Abstract:
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This thesis describes taxation of quoted and unquoted shares in relation to both individuals
as well as to companies including the amendment of tax rules in connection with the
adoption of the tax reform from 2010 - the so called "Forårspakke 2.0".
Capital gains on shares for individuals are taxed according to the realisation principle
regardless of the period of ownership. Selling or disposal of shares requires a statement of
the taxable profit or of the deductible loss which is reported as equity income in the income
tax return. At part selling the average cost formula is applied for the calculation of
purchase prices of the shares sold.
When individuals make a profit on disposed shares the capital gain shall be included as
equity income. Capital gain is taxed according to the rules of §4 of PSL. Equity income is
taxed at rates of 28% and 42%, respectively. Losses on quoted shares can be set off in
positive equity income from similar shares. If losses cannot be withheld in the positive
equity income, the losses can be brought forward to set off against profits at a later time.
Losses from unquoted shares can be set off against other equity income. Should the loss
exceed the positive equity income, a calculation of the tax value is made of the remaining
loss according to the same principle as applied for capital gains. Tax value hereof can be
set off against other taxes.
From and including income year 2010 companies distinct between subsidiary shares,
group shares and portfolio shares. Shares related to subsidiaries and group companies
are tax-exempt. Portfolio shares will be liable to tax regardless of the period of ownership.
From income year 2010 capital gains and losses from portfolio shares will be taxed
according to the market-value principle. However, capital losses can be set off against
other taxable income of the company such as dividends or profit from other activities of the
company.
The new tax rules adopted in 2010 do not give an explicit answer where to place
investments successfully. Many factors are important. As examples for companies;
operating profit, dividends and other income in which losses can be set off. To be able to
find the best possible solution, one has to consider each individual situation carefully. |
