Effective as of 1 January 2006, profit on idea shares is covered by the rules for ordinary shares.

This means that regardless of the amount of time you have owned the shares, all earnings are subject to taxation once you sell the shares (listed as well as unlisted shares).

Earnings are taxed as share income.

Profits are taxed by 28% on the first DKK 45,500 (2007) - double that for spouses - and by 43% on the remaining amount. You may deduct losses on unlisted shares from your share income.

1. You receive shares in 2006 worth an estimated fair value of DKK 10,000.
2. You are taxed at 59% on this value upon assignment as described (it is assumed that no AM-contribution is payable).
3. You sell the shares in 2008 at a price of DKK 20,000.

Based on the above conditions, a simplified tax calculation may be made as follows:

• Share selling price DKK 20,000
• Tax upon assignment (10,000 * 59%)  DKK   5,900
• Tax upon sale (20,000 - 10,000 * 28%)  DKK   2,800

• Profit after tax   DKK 11,300

You are personally responsible for reporting the profit or loss on the sale of the shares on your income tax return the year after the sale.

 
Contact your accountant - before acquiring the shares - in order to have your current financial situation reviewed.