Can Danish Companies Pay Dividends from Non-Taxable Swedish Profits Despite Annual Tax Losses?

Can the Danish company pay dividends to shareholders if it has a profit on the balance sheet due to non-taxable dividends from a Swedish company, despite showing losses in the annual incorporation tax declaration?

En dansk virksomhed kan udbetale udbytte til aktionærer, hvis den har overskud på balancen fra skattefrie udbytter fra en svensk virksomhed, selvom den viser tab i den årlige selskabsskatteopgørelse, forudsat at den overholder dansk selskabslovgivning og udbyttefordelingsregler.

Can the Danish company pay dividends to shareholders if it has a profit on the balance sheet due to non-taxable dividends from a Swedish company, despite showing losses in the annual incorporation tax declaration?

The Danish company can pay dividends to shareholders if:

• It has a profit on the balance sheet.
• The profit includes non-taxable dividends from a Swedish company.
• It complies with Danish corporate law and dividend distribution regulations.

However, the company must ensure that:

• It meets all legal and financial obligations.
• It does not violate any specific tax rules or restrictions.