Employers in Denmark that offer share-based remuneration must meet annual reporting obligations by January 20 of the following year. This requirement covers all equity plans, including warrants, stock options, RSU’s, PSU’s, as well as shares granted under the tax-advantaged section 7P.
Vialto Partners have observed increased focus from Danish tax authorities, underscoring the importance of employers to remain diligent with their reporting obligations. Failure to comply may result in fines and penalties.
The annual reporting requirement applies to employers that provide share-based remuneration to employees in Denmark. In this connection, the employer has an annual reporting obligation.
When employees receives share-based remuneration in Denmark, there are two separate but parallel reporting obligations:
AKSA Deadlines
The standard deadline for each year’s reporting is January 20 in the subsequent year. For example, vestings from 2025 must be reported by January 20, 2026.
AKSA Scope
AKSA reporting applies to share-based remuneration plans such as warrants, stock options, RSUs, PSUs, and also applicable to shares covered by the tax beneficial Section 7P (Ligningslovens § 7P).
The requirement covers both listed and unlisted shares and applies even if the share plan is administered by a parent company outside of Denmark. For example, if employees in Denmark are granted share-based remuneration through a US-based parent company, this would trigger a reporting obligation.
Importantly, the obligation is not limited to expats. All employees in Denmark who receive any type of share-based remuneration are considered in scope.
Planning Opportunities & Considerations
With the Danish Tax Authorities placing increased focus on equity reporting compliance, it is essential for employers to stay informed to avoid potential fines and penalties.
If you require assistance with reporting or wish to discuss the most effective compliance strategies, Vialto Partners is available to help you navigate these requirements efficiently.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Magnus Brissing
Director
Alexander Henriksen
Associate
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