In our Insights section, you can access our free publications, our regular newsletter and the news about transfer prices and our signature.

Denmark may introduce mandatory filing of TP documention with the tax return

On October 8, coinciding with the beginning of the parliamentary year in Denmark, a draft bill was presented for debate that modifies the terms of presentation of transfer pricing documentation and the consequences of failure to present it.

To date, as in most EU countries, the Danish transfer pricing rules require taxpayers to prepare transfer pricing documentation and make it available to the Tax Administration upon request. Since January 1, 2019, such documentation must be contemporary, i.e., it must be prepared and available at the time of filing the corporate income tax return. In the event of failure to comply with the obligation to prepare transfer pricing documentation contemporaneously, the Tax Administration may ignore it in the transfer pricing assessment.

However, the Danish Supreme Court’s 2019 ruling on the Microsoft Case (SKM2019.136.HR) limited the Tax Administration’s ability to ignore transfer pricing documentation prepared by the taxpayer in a non-contemporary manner, i.e., after the filing of the return.

The draft bill of October 4 tries to respond to this Supreme Court ruling, by introducing the obligation to submit the transfer pricing documentation together with the corporate income tax return, so that it is no longer possible to prepare it later. The draft bill also clarifies the effects of non-compliance, allowing the Danish Tax Administration to make transfer pricing adjustments.

If this draft bill is finally passed, Denmark would become the first EU country to require transfer pricing documentation to be filed together with the return, as is the case in some Latin American countries. 

Related posts

Newsletter TPS – March 2023

National Court Partially Accepts Universal Pictures International Spain’s Appeal Against Tax Assessment on Transfer Pricing Methodology The National Court in Spain has partially accepted the

Read More »

Newsletter TPS – February 2023

Transfer pricing developments around the world   Israeli tax authority issues guidelines for the preparation of country-by-country reports by large multinational groups The Israel Tax

Read More »

TPS Newsletter – December 2022

Transfer pricing developments around the world Brazil aligns transfer pricing rules with the OECD The Brazilian government has issued new transfer pricing (TP) legislation based

Read More »
This site is registered on as a development site.