DenmarkTax Guide

2013

PKF Worldwide Tax Guide 2013 I

Fore

wor

d

foreword

A country’s tax regime is always a key factor for any business considering moving into new markets. What is the corporate tax rate? Are there any incentives for overseas businesses? Are there double tax treaties in place? How will foreign source income be taxed?

Since 1994, the PKF network of independent member firms, administered by PKF International Limited, has produced the PKF Worldwide Tax Guide (WWTG) to provide international businesses with the answers to these key tax questions. This handy reference guide provides clients and professional practitioners with comprehensive tax and business information for over 90 countries throughout the world.

As you will appreciate, the production of the WWTG is a huge team effort and I would like to thank all tax experts within PFK member firms who gave up their time to contribute the vital information on their country’s taxes that forms the heart of this publication.

I hope that the combination of the WWTG and assistance from your local PKF member firm will provide you with the advice you need to make the right decisions for your international business.

Richard SackinChairman, PKF International Tax CommitteeEisner Amper LLP richard.sackin@eisneramper.com

PKF Worldwide Tax Guide 2013II

Disclaimer

important disclaimer

This publication should not be regarded as offering a complete explanation of the taxation matters that are contained within this publication.This publication has been sold or distributed on the express terms and understanding that the publishers and the authors are not responsible for the results of any actions which are undertaken on the basis of the information which is contained within this publication, nor for any error in, or omission from, this publication.

The publishers and the authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.

Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.

PKF International is a network of legally independent member firms administered by PKF International Limited (PKFI). Neither PKFI nor the member firms of the network generally accept any responsibility or liability for the actions or inactions on the part of any individual member firm or firms.

PKF Worldwide Tax Guide 2013 III

Pref

ace

preface

The PKF Worldwide Tax Guide 2013 (WWTG) is an annual publication that provides an overview of the taxation and business regulation regimes of the world’s most significant trading countries. In compiling this publication, member firms of the PKF network have based their summaries on information current on 1 January 2013, while also noting imminent changes where necessary.

On a country-by-country basis, each summary addresses the major taxes applicable to business; how taxable income is determined; sundry other related taxation and business issues; and the country’s personal tax regime. The final section of each country summary sets out the Double Tax Treaty and Non-Treaty rates of tax withholding relating to the payment of dividends, interest, royalties and other related payments.

While the WWTG should not to be regarded as offering a complete explanation of the taxation issues in each country, we hope readers will use the publication as their first point of reference and then use the services of their local PKF member firm to provide specific information and advice.

In addition to the printed version of the WWTG, individual country taxation guides are available in PDF format which can be downloaded from the PKF website at www.pkf.com

PKF INTERNATIONAL LIMITEDMAY 2013

©PKF INTERNATIONAL LIMITEDALL RIGHTS RESERVEDUSE APPROVED WITH ATTRIBUTION

PKF Worldwide Tax Guide 2013IV

Introduction

about pKf international limited

PKF International Limited (PKFI) administers the PKF network of legally independent member firms. There are around 300 member firms and correspondents in 440 locations in around 125 countries providing accounting and business advisory services. PKFI member firms employ around 2,270 partners and more than 22,000 staff.PKFI is the 11th largest global accountancy network and its member firms have $2.68 billion aggregate fee income (year end June 2012). The network is a member of the Forum of Firms, an organisation dedicated to consistent and high quality standards of financial reporting and auditing practices worldwide.

Services provided by member firms include:

Assurance & AdvisoryInsolvency – Corporate & PersonalFinancial Planning/Wealth managementTaxationCorporate FinanceForensic AccountingManagement ConsultancyHotel ConsultancyIT Consultancy

PKF member firms are organised into five geographical regions covering Africa; Latin America; Asia Pacific; Europe, the Middle East & India (EMEI); and North America & the Caribbean. Each region elects representatives to the board of PKF International Limited which administers the network. While the member firms remain separate and independent, international tax, corporate finance, professional standards, audit, hotel consultancy and business development committees work together to improve quality standards, develop initiatives and share knowledge and best practice cross the network.

Please visit www.pkf.com for more information.

PKF Worldwide Tax Guide 2013 V

Stru

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e

structure of country descriptions

a. taXes payable

FEDERAL TAXES AND LEVIES COMPANY TAX CAPITAL GAINS TAX BRANCH PROFITS TAX SALES TAX/VALUE ADDED TAX FRINGE BENEFITS TAX LOCAL TAXES OTHER TAXES

b. determination of taXable income

CAPITAL ALLOWANCES DEPRECIATION STOCK/INVENTORY CAPITAL GAINS AND LOSSES DIVIDENDS INTEREST DEDUCTIONS LOSSES FOREIGN SOURCED INCOME INCENTIVES

c. foreiGn taX relief

d. corporate Groups

e. related party transactions

f. witHHoldinG taX

G. eXcHanGe control

H. personal taX

i. treaty and non-treaty witHHoldinG taX rates

PKF Worldwide Tax Guide 2013VI

Time Zones

AAlgeria . . . . . . . . . . . . . . . . . . . .1 pmAngola . . . . . . . . . . . . . . . . . . . .1 pmArgentina . . . . . . . . . . . . . . . . . .9 amAustralia - Melbourne . . . . . . . . . . . . .10 pm Sydney . . . . . . . . . . . . . . .10 pm Adelaide . . . . . . . . . . . . 9.30 pm Perth . . . . . . . . . . . . . . . . . .8 pmAustria . . . . . . . . . . . . . . . . . . . .1 pm

BBahamas . . . . . . . . . . . . . . . . . . .7 amBahrain . . . . . . . . . . . . . . . . . . . .3 pmBelgium . . . . . . . . . . . . . . . . . . . .1 pmBelize . . . . . . . . . . . . . . . . . . . . .6 amBermuda . . . . . . . . . . . . . . . . . . .8 amBrazil. . . . . . . . . . . . . . . . . . . . . .7 amBritish Virgin Islands . . . . . . . . . . .8 am

CCanada - Toronto . . . . . . . . . . . . . . . .7 am Winnipeg . . . . . . . . . . . . . . .6 am Calgary . . . . . . . . . . . . . . . .5 am Vancouver . . . . . . . . . . . . . .4 amCayman Islands . . . . . . . . . . . . . .7 amChile . . . . . . . . . . . . . . . . . . . . . .8 amChina - Beijing . . . . . . . . . . . . . .10 pmColombia . . . . . . . . . . . . . . . . . . .7 amCyprus . . . . . . . . . . . . . . . . . . . .2 pmCzech Republic . . . . . . . . . . . . . .1 pm

DDenmark . . . . . . . . . . . . . . . . . . .1 pmDominican Republic . . . . . . . . . . .7 am

EEcuador . . . . . . . . . . . . . . . . . . . .7 amEgypt . . . . . . . . . . . . . . . . . . . . .2 pmEl Salvador . . . . . . . . . . . . . . . . .6 amEstonia . . . . . . . . . . . . . . . . . . . .2 pm

FFiji . . . . . . . . . . . . . . . . .12 midnightFinland . . . . . . . . . . . . . . . . . . . .2 pmFrance. . . . . . . . . . . . . . . . . . . . .1 pm

GGambia (The) . . . . . . . . . . . . . 12 noonGermany . . . . . . . . . . . . . . . . . . .1 pmGhana . . . . . . . . . . . . . . . . . . 12 noonGreece . . . . . . . . . . . . . . . . . . . .2 pmGrenada . . . . . . . . . . . . . . . . . . .8 amGuatemala . . . . . . . . . . . . . . . . . .6 am

Guernsey . . . . . . . . . . . . . . . . 12 noonGuyana . . . . . . . . . . . . . . . . . . . .7 am

HHong Kong . . . . . . . . . . . . . . . . .8 pmHungary . . . . . . . . . . . . . . . . . . .1 pm

IIndia . . . . . . . . . . . . . . . . . . . 5.30 pmIndonesia. . . . . . . . . . . . . . . . . . .7 pmIreland . . . . . . . . . . . . . . . . . . 12 noonIsle of Man . . . . . . . . . . . . . . 12 noonIsrael . . . . . . . . . . . . . . . . . . . . . .2 pmItaly . . . . . . . . . . . . . . . . . . . . . .1 pm

JJamaica . . . . . . . . . . . . . . . . . . .7 amJapan . . . . . . . . . . . . . . . . . . . . .9 pmJordan . . . . . . . . . . . . . . . . . . . .2 pm

KKenya . . . . . . . . . . . . . . . . . . . . .3 pm

LLatvia . . . . . . . . . . . . . . . . . . . . .2 pmLebanon . . . . . . . . . . . . . . . . . . .2 pmLuxembourg . . . . . . . . . . . . . . . .1 pm

MMalaysia . . . . . . . . . . . . . . . . . . .8 pmMalta . . . . . . . . . . . . . . . . . . . . .1 pmMexico . . . . . . . . . . . . . . . . . . . .6 amMorocco . . . . . . . . . . . . . . . . 12 noon

NNamibia. . . . . . . . . . . . . . . . . . . .2 pmNetherlands (The) . . . . . . . . . . . . .1 pmNew Zealand . . . . . . . . . . .12 midnightNigeria . . . . . . . . . . . . . . . . . . . .1 pmNorway . . . . . . . . . . . . . . . . . . . .1 pm

OOman . . . . . . . . . . . . . . . . . . . . .4 pm

PPanama. . . . . . . . . . . . . . . . . . . .7 amPapua New Guinea. . . . . . . . . . .10 pmPeru . . . . . . . . . . . . . . . . . . . . . .7 amPhilippines . . . . . . . . . . . . . . . . . .8 pmPoland. . . . . . . . . . . . . . . . . . . . .1 pmPortugal . . . . . . . . . . . . . . . . . . .1 pmQQatar. . . . . . . . . . . . . . . . . . . . . .8 am

RRomania . . . . . . . . . . . . . . . . . . .2 pm

international time Zones

AT 12 NOON, GREENwICH MEAN TIME, THE STANDARD TIME ELSEwHERE IS:

PKF Worldwide Tax Guide 2013 VII

Tim

e Zo

nes

Russia - Moscow . . . . . . . . . . . . . . .3 pm St Petersburg . . . . . . . . . . . .3 pm

SSingapore . . . . . . . . . . . . . . . . . .7 pmSlovak Republic . . . . . . . . . . . . . .1 pmSlovenia . . . . . . . . . . . . . . . . . . .1 pmSouth Africa . . . . . . . . . . . . . . . . .2 pmSpain . . . . . . . . . . . . . . . . . . . . .1 pmSweden . . . . . . . . . . . . . . . . . . . .1 pmSwitzerland . . . . . . . . . . . . . . . . .1 pm

TTaiwan . . . . . . . . . . . . . . . . . . . .8 pmThailand . . . . . . . . . . . . . . . . . . .8 pmTunisia . . . . . . . . . . . . . . . . . 12 noonTurkey . . . . . . . . . . . . . . . . . . . . .2 pmTurks and Caicos Islands . . . . . . .7 am

UUganda . . . . . . . . . . . . . . . . . . . .3 pmUkraine . . . . . . . . . . . . . . . . . . . .2 pmUnited Arab Emirates . . . . . . . . . .4 pmUnited Kingdom . . . . . . .(GMT) 12 noonUnited States of America - New York City . . . . . . . . . . . .7 am Washington, D.C. . . . . . . . . .7 am Chicago . . . . . . . . . . . . . . . .6 am Houston . . . . . . . . . . . . . . . .6 am Denver . . . . . . . . . . . . . . . .5 am Los Angeles . . . . . . . . . . . . .4 am San Francisco . . . . . . . . . . .4 amUruguay . . . . . . . . . . . . . . . . . . .9 am

VVenezuela . . . . . . . . . . . . . . . . . .8 am

ZZimbabwe . . . . . . . . . . . . . . . . . .2 pm

PKF Worldwide Tax Guide 2013 1

denmarK

Currency: Kroner Dial Code To: 45 Dial Code Out: 00 (DKK)

Member Firm:City: Name: Contact Information:Copenhagen Hans Munkebo 43 96 06 56(Glostrup) Christiansen h.munkebo@pkf.dk

a. taXes payable

COMPANy TAxResident corporations are subject to Danish corporate income tax on their profits in Denmark and, to some extent, on income sourced abroad. Non-resident companies are required to pay tax on income sourced in Denmark.

Resident corporations include all Danish companies registered with the Danish Commerce and Companies Agency, as well as certain non-registered companies that are treated as residents. Companies incorporated under the laws of another country may be considered to be resident in Denmark if central management and control is exercised in Denmark.

Corporate income tax is charged at 25%. Tax is paid on account on a current year basis in two instalments on 20 March and 20 November during the tax year, with a final instalment due on 20 November following the end of the tax year.

CAPITAL GAINS TAxCapital gains/losses on disposals of assets are, in general, included in taxable income and subject to tax at the normal corporate tax rate.

Capital gains on disposals of shares are exempt unless the share holding is less than 10% in a listed company.

Capital losses on disposals of other shares are deductible, if they can be offset against gains on other shares in a listed company.

Capital gains on disposals of assets and liabilities of a Danish permanent establishment are taxable in Denmark. This applies also to Danish real estate.

BRANCH PROFITS TAxBranches of foreign companies are taxed on income derived from their activities in Denmark. Tax is calculated at the corporate tax rate of 25%.

SALES TAx/VALUE ADDED TAx (VAT)Danish value added tax (VAT) is levied at a standard rate of 25% of the sale price of most goods and services and the legislation generally follows EC Directives. No graduated rates exist.

Certain services are exempt, including most banking and medical services. Instead, a pay-roll tax of between 3.08% and 10.9% (increases to 12.3% in 2021) is charged on the actual pay-roll or, in certain cases, on the result before interest and capital gains. Exports are zero rated.

FRINGE BENEFITS TAx (FBT)The tax value of most benefits in kind is, in principle, the fair market value. Employees are taxed on benefits in kind received. The cost of benefits in kind is deductible for tax purposes by the company.

LOCAL TAxESProperty Tax: Owners of real estate are subject to a local property tax based on the value of the land. The tax is levied at various local rates ranging from 1.6% to 3.4%.

OTHER TAxESTransfer tax is levied on registration only. A change in ownership of real estate is charged at the rate of 0.6% + DKK 1,400 and on mortgages at 1.5% + DKK 1,400. Different rates apply to registrations of ships and aircraft.

Stamp duty only applies to certain insurance policies.

SOCIAL SECURITy TAxESSocial security is funded almost entirely through income taxes. The only exceptions are the ATP and Health Contribution.

Denmark

PKF Worldwide Tax Guide 20132

ATP is a supplementary State pension scheme. The employer pays DKK 2,160 (2013) annually and employees pay DKK 1,080 (2013) annually.

Health Contribution is collected from employees and self-employed persons. The contribution is levied on gross salary and business income respectively at the rate of 8%. The employer withholds the contribution for the employee and the amount of contribution is deductible when computing the employee’s personal income.

b. determination of taXable income

Net or taxable income is arrived at by adjusting the accounting profits for non-taxable income and non-deductible items.

DEPRECIATIONAssets which cost less than DKK 12,300 (2013) or have an estimated useful life of less than three years can be written off immediately.

Ships less than 20 tons, machinery, furniture and other equipment are generally depreciated collectively using the declining-balance method. The balance may be written off at a maximum rate of 25%.

Buildings for manufacturing etc. are depreciated under the straight-line method according to the useful life. The normal rate is 4% per annum. If the useful life is less than 25 years, the rate will be increased accordingly. Depreciation of office buildings and dwelling houses is not allowable for tax purposes.

The cost of goodwill, know-how etc, may be depreciated over seven years using the straight-line method.

STOCK/INVENTORyInventory may be valued at cost or market value.

CAPITAL GAINS AND LOSSESSee discussion above.

DIVIDENDSDividends received from a subsidiary are basically exempt from tax if the parent company owns 10% or more of the share capital throughout a 12-month period in which the dividend is received. It is a requirement that the dividend-paying company is resident within the EC or in a tax treaty country and that it is not a ‘flow-through’ entity. Specific rules apply to dividends received from a subsidiary in a non-EC and non-treaty country.

Withheld tax will be considered as a tax payment on account.

INTEREST Interest income, except interest on overpaid corporate tax, is included in taxable income. Companies must compute this income on an accruals basis.

In general, interest paid is deductible whether due to foreign or resident creditors and regardless of the purpose of the debt. However, limitations may apply due to Danish thin capitalisation rules and limitations apply if net financial expenses exceed DKK 21.3 million (2013).

Interest on overdue tax is not deductible.

LOSSESLosses may normally be carried forward indefinitely. Only 60% of profit each year may be off-set by brought forward losses, although there is no such restriction in any period where the profit is DKK 7.5 million or less. Losses may not be offset against interest and other capital income, net of interest paid, if more than 50% of the shares in the company have changed ownership since the loss was incurred. If a company enters into a settlement with creditors, losses carried forward are reduced by the nominal amount of debt cancelled.

In cases where the company receives a capital contribution in connection with a reconstruction from a principal creditor and the company subsequently repays its debts to the creditor, tax losses from income years up to and including the year of the capital contribution will be reduced by an amount equal to the capital reduction.

Furthermore, tax losses cannot be offset against future taxable income if the company has no activity at the time the transfer was agreed.

Losses cannot be carried back.

Denmark

PKF Worldwide Tax Guide 2013 3

CONTROLLED FINANCIAL COMPANy INCOME (CFC)Profits made by Danish financial companies or foreign subsidiaries will be taxed in Denmark if the Danish parent company (directly/indirectly) controls the company (votes/decisive influence), and:• thebusinessofthecompanyismainlyofafinancialnature(iemorethanhalfof

its gross income is derived from certain financial activities), and;• thefinancialassetsofthecompanyexceed10%oftheassetsofthecompany.Credit is given for foreign taxes paid on foreign income.

Losses resulting from activities in foreign countries cannot generally be deducted from the Danish source income unless voluntary global joint taxation has been chosen.

c. foreiGn taX relief

Danish tax law provides for unilateral relief for foreign taxes paid on some types of income (dividends, royalties, etc). Such relief may not exceed the Danish tax liability that relates to the foreign income concerned. If a tax treaty is in force, relief may be restricted to the tax that the foreign state is entitled to levy under the treaty.

If income is earned in a country with which Denmark has no treaty, any foreign tax is relieved by the credit method under domestic tax rules.

No Danish tax credit is given for foreign permanent establishment profit or real estate profit unless voluntary global joint taxation is elected for. Thus, Denmark has adopted the principle of territoriality for Danish companies.

d. corporate Groups

Danish companies within a group, along with Danish permanent establishments and real estate of foreign subsidiaries are subject to compulsory Danish joint taxation. Such companies must have the same financial year.

The group taxation allows the pooling of profits and losses. Losses of one company can be offset against profits of another company.

Such a group may elect to enter into a voluntary global joint taxation arrangement with foreign group companies and foreign permanent establishments and real estate. If voluntary global joint taxation is opted for, all foreign group companies, permanent establishments and real estate ‘above’ and ‘below’ Denmark must be included in the joint taxation (cf ‘global’). In this case, capital gains derived by non-residents from disposals of Danish shares or bonds may be subject to tax in Denmark.

The foreign entities’ income, assessed according to Danish rules, is then included in the Danish taxable income of the group but normally no additional Danish tax is imposed because a tax credit for foreign corporate tax paid is allowed. The inclusion may allow foreign tax losses to be offset against Danish taxable profits. Special rules apply with respect to exemption/credit for foreign taxes and claw back provisions respectively.

e. related party transactions

Related party transactions must be in accordance with the arm’s length principle.

f. witHHoldinG taX

Danish outward dividends are generally subject to a 27% withholding tax.

Outward interest payments are generally subject to a 30% Danish withholding tax. However, several modifications apply and under most tax treaties this withholding tax is reduced or refunded.

Outward royalty payments under industrial, commercial or scientific agreements are subject to a 30% withholding tax. Under most tax treaties, this withholding tax is reduced or refunded.

G. eXcHanGe controls

In general, Denmark does not impose exchange controls on business activities.

H. personal taX

Individuals are deemed to be residents of Denmark for tax purposes if they occupy accommodation in Denmark as their permanent place of abode or remain in the country for a period of six months or more.

Denmark

PKF Worldwide Tax Guide 20134

Tax residency is normally terminated on emigration. Some assets will be deemed to be taxed as sold at market value on the date of departure. Any profit will be taxed in Denmark.

Residents are subject to Danish taxation on their worldwide income.

Non-resident individuals are subject to tax on Danish-sourced income, including dividends, royalties, profits from Danish permanent establishments; profits from real estate; and salaries earned from work performed in Denmark.

Profits made by more than 50% held (shares/votes) financial companies established in low tax countries are taxable in Denmark at 25% (CFC). The CFC taxation generally only applies if the company’s financial income is more than 50% of its total income but may not apply if the company is established in an EC or a tax treaty country.

Dividends and gains and losses on the disposals of shares are taxed jointly. The tax rate on this income is 27% on amounts up to DKK 48,300 and 42% on the surplus (2013).

Personal income includes all remuneration received from the taxpayer’s employer, whether in cash or kind, such as free lodging, free use of a car, free use of the telephone etc.

Pension payments, unemployment benefits etc are also included in personal income.After deduction of Labour Market Contributions of 8% (for 2013) on gross salary and business income, tax due on the total taxable income and its components is determined as follows:• abasicchargeof25.6%(average)ontaxableincomeisduetothemunicipality

and church, in which the taxpayer lives• HealthContributionsof8%ontaxableincome(2013)• thebasicStatetaxrateis3.64%ontaxablepersonalandpositiveinterest

income (2013)• andadditionalhigherrateof15%isleviedonincomeexceedingDKK421,000

(2013).

Some expatriates who are employed in Denmark for a maximum period of 36/48 months can, under certain conditions, choose to be taxed on their gross salary by a final tax instead of ordinary income tax. The tax rate is 26% plus Labour Market Contributions of 8%.

Maximum tax rates(including local and national taxes)2011 (%)

Personal income 51.5

Net capital expenses (1) 33.79

Deductions (2) 33.79

1 Tax value of interest expenses and capital losses if deductible.2 Tax value of other tax deductions such as car allowance etc.

i. treaty and non-treaty witHHoldinG taX rates

Dividends (%)

Interest(%)

(1) Royalties (%)

Treaty Countries:

Argentina 15/10 (2) 12 3/5/10/15

Armenia 15/0 0 0

Australia 15 10 10

Austria 0/15 (3) 0 0

Bangladesh 10/15 (3) 10 10

Belarus 15 0 0

Belgium 0/15 (2) 10 0

Brazil 25 15 15/25

Denmark

PKF Worldwide Tax Guide 2013 5

Dividends (%)

Interest(%)

(1) Royalties (%)

Bulgaria 15/5 (2) 0 0

Canada 15/5 (2) 10 0/10

Chile 15/5 (2) 15 5/15

China 10 10 10

Croatia 10/5 (2) 5 10

Cyprus 15/0 (15) 0 0

Czech Republic 15 0 10

Egypt 20/15 (12) 15 20

Estonia 15/5 (2) 10 5/10

Faroe Islands 0/15 (4) 0 0

Finland 0/15 (4) 0 0

France (5) N/A N/A N/A

Georgia 0/5/10 (3) (6) 0 0

Germany 5/15 (3) 0 0

Greece 18 8 5

Greenland 15/5 (2) 0 10

Hungary 15/5 0 0

Iceland 0/15 (4) 0 0

India 25/15 (2) 10/15 20

Indonesia 20/10 (2) 10 15

Ireland 0/15 (2) 0 0

Israel 15/5 (8) 25 10

Italy 0/15 (2) 10 5

Jamaica 15/10 (2) 12.5 10

Japan 15/10 (2) 10 10

Kenya 30/20 (2) 20 20

Korea (Rep) 15 15 10/15

Kyrgyzstan 15 0 0

Latvia 15/5 (2) 10 5/10

Lithuania 15/5 (2) 10 /0 5/10

Luxembourg (9) 15/5 (2) 0 0

Macedonia 15/5 (2) 0 10

Malaysia 0 25 10

Malta 0/15 (2) 0 0

Mexico 15/0 (2) 5/15 10

Morocco 10/25 (2) 10 10

Netherlands 0/15 (3) 0 0

New Zealand 15 10 10

Norway 0/15 (3) 0 0

Pakistan 15 15 12

Philippines 15/10 (2) 10 15

Poland 15/0/5 (2) (10) 5 5

Portugal 0/10 (7) 10 10

Romania 15/10 (2) 10 10

Russia 10 0 0

Serbia 15/5 (2) 10 10

Denmark

PKF Worldwide Tax Guide 20136

Dividends (%)

Interest(%)

(1) Royalties (%)

Singapore 10/0/5 (2) (10) 10 10

Slovak Republic 15 0 5

Slovenia 15/5 (2) (10) 5 5

South Africa 15/5 (2) 0 0

Spain (5) N/A N/A N/A

Sri Lanka 15 10 10

Sweden 0/15 (3) 0 0

Switzerland 0/15 (3) 0 0

Taiwan 10 10 10

Tanzania 15 12.5 20

Thailand 10 10/15 5/15

Trinidad and Tobago 20/10 (14) 15 15

Tunisia 15 12 15

Turkey 20/15 (2) 15 10

Uganda 10/15 (2) 10 10

Ukraine 15/5 (2) 0/10 10

United Kingdom 15/0 (7) 0 0

United States 0/15/5 (3) (11) 0 0

Venezuela 15/5 (2) 0/5 5/10

Vietnam 15/5/10 (10) (12) 10 5/15

Yugoslavia 5/15 (2) 0 0

Zambia 15 0/10 15

1 Denmark imposes withholding taxes on outward interest payments at a rate of 30%. However, Danish withholding tax does not generally apply to interest payments to a foreign group company in an EC Member State or protected by a tax treaty.

2 The lower rate applies at 25% ownership.3 The lower rate applies at 10% ownership.4 The zero rate applies at 10% ownership.5 The treaty was terminated on 1 January 2009.6 The zero rate applies at 50% ownership.7 The zero rate applies if the EU Parent/subsidiary Directive applies.8 The lower rate applies at 50% of the votes.9 The treaty does not apply to 1929 Luxembourg holding companies.10 The 5% rate applies if paid to approved entity.11 The zero rate applies at 80% of the votes.12 The 5% rate applies at 70% ownership or an investment of at least 12 million USD.13 The 10% rate applies between 25% and 70% ownership.14 The 10% rate applies at 25% of the votes15 The 0% rate applies where the

recipient of the dividend holds at least 10% of the capital of the company paying the dividend, or is the Central bank, a Government agency or a pension fund in Cyprus

Denmark

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