Account-holding investment funds

If you want to set up a new account-holding investment fund, you can request a CVR number at virk.dk.

At virk.dk, you can also request administrative SE numbers for new funds and unit classes in both a new and an existing account-holding investment fund.

An account-holding investment fund can apply for a dividend tax exemption card.

Companies and associations etc., that distribute dividend are not required to withhold dividend tax if they present a valid dividend tax exemption card or appear in the Tax Agency’s database of dividend tax rates.

Search by dividend tax rate

The validity of the dividend tax exemption card can be checked via this database if the dividend tax exemption card was issued on or after 1 January 2014.

If the securities are registered in a central securities depository through a custody account with a bank, the dividend tax exemption card must be shown to the bank in question. In other cases, the dividend tax exemption card must be shown to the company or fund that distributes the dividend.

You send your application for a dividend tax exemption card to us via form 06.036: Apply or reapply for a dividend tax exemption card. The form tells you which information you need to include in the application

The dividend tax exemption card is valid for a maximum of ten years. If your circumstances change, the dividend tax exemption card must be returned to us.

If you no longer meet the conditions for being an account-holding investment fund, your members will be taxed and you must present statements as if your members were withdrawing their contributions. This also applies even if the fund isn't dissolved.

A change in your tax status is thereby equivalent to all your members resigning and establishing a new fund that isn't an account-holding investment fund.

You can notify us of a change in tax status in E-tax for businesses:

1. Log on to E-tax for businesses
2. Select Contact
3. Select Write to us
4. Select Companies, funds and associations
5. Select Aktier, anparter, udbytte-, royalty-, rente- og kursgevinstskat (Shares, units, dividend, royalty, interest and capital gains tax)
6. Select Investeringsforeninger og investeringsselskaber (ikke A/S eller ApS) (Investment funds and investment companies (not A/S or ApS)
7. Write your message and select Send.

Account-holding funds must report investors’ holdings, distribution of dividends and purchases and sales to us.

Reporting on purchases and sales, as well as holdings as of 31 December, must take place annually. If dividends are distributed to investors, reporting must take place on an ongoing basis. Account-holding investment funds must report annually on members’ deposits, withdrawals and accrual of interest on the deposits.

Please note that other rules apply to who must report if the shares are held in a custody account with a bank or are registered with a central securities depository.

You can read more about account-holding investment funds’ reporting in the reporting guidelines on the page Beviser og aktier i investeringsforeninger og selskaber (IFPA) (Certificates and shares in investment funds and companies (IFPA)).

If you have questions about account-holding investment funds, you can send them via E-tax for businesses:

1. Log on to E-tax for businesses
2. Select Contact
3. Select Write to us
4. Select Companies, funds and associations
5. Select Aktier, anparter, udbytte-, royalty-, rente- og kursgevinstskat (Shares, units, dividend, royalty, interest and capital gains tax)
6. Select Investeringsforeninger og investeringsselskaber (ikke A/S eller ApS) (Investment funds and investment companies (not A/S or ApS)
7. Write your message and select Send.

The rules on the subjective tax liability of account-holding investment funds are set out in section 1(1) para (5)(d) of the Corporation Tax Act.

Other rules can be found in the Danish Act on the taxation of members of account-holding investment funds (Lov om beskatning af medlemmer af kontoførende investeringsforeninger) and sections 1(7) and (8) of Corporation Tax Act.

The rules on the issue of dividend tax exemption cards are set out in section 30(2) of Executive Order no. 2104 of 23 November 2021 on withholding tax (the Executive Order on Withholding Tax at Source).