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New Danish interest deduction limitations and CFC rules

Denmark

On 6 June 2007, bill L213 on CFC taxation and counter measures against private equity funds was enacted as Act no. 540 of 6 June 2007 (in the following referred to as the Act).

The Act limits the deductibility of financial expenses incurred after 1 July 2007 significantly. It may severely affect many structures already in place and prevent the future use of leveraged acquisition financing structures.

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