Those liable to PAL taxation whose taxable yields are defined in Sections 3, 6 and 7 of PAL must include all types of asset yields. This section describes the most common types of asset yields. The list is not exhaustive.

The various types of yields are described on the basis of the Danish tax rules. The foreign assets are taxed in the same manner as the Danish assets with which they can best be compared.

Note

►In the event of doubt as to whether a foreign security is taxable in accordance with Danish rules, it is possible to request a binding assessment notice. This means that SKAT in advance determines how the asset in question should be taxed. For information about binding assessments, see section D.10 Binding assessment notice.◄

The section covers

• Interest income (C.2.3.1)
• Profit or loss from the operation of real property or other business activities (C.2.3.2)
• Yields from different assets (C.2.3.3)
• Gains or losses on debt (C.2.3.4)
• Cancellation of own shares (C.2.3.5)
• Trading costs (C.2.3.6)

See also section B.2, Basis of taxation of plans with banks and credit institutions, pension accounts covered by Section 42 of the Danish Pension Tax Act (Pensionsbeskatningsloven (PBL)) and contributory pension accounts covered by Section 51 of PBL, and section B.6, Joint provisions on deductions from the basis of taxation under Sections 3, 6 and 7 of PAL