Binding tax rulings.
Certainty before the act — strategy, drafting and submission of binding ruling requests to the Danish Tax Agency.
A binding ruling is one of the most valuable instruments in Danish tax planning. It allows a taxpayer to ask the Danish Tax Agency for a binding answer on the tax, VAT or duty consequences of a specific action before the position is implemented, or in some cases after an action has already occurred.
The ruling is only as useful as the question. If the facts are incomplete, the transaction later changes or the wrong legal issue is framed, the answer may not protect the client. Moore Law’s work is therefore not merely submission. It is strategy, framing, drafting and execution planning.
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A binding ruling protects the question asked on the facts presented. The transaction must be implemented consistently with the ruling request.
The wording is the instrument.
The Tax Agency answers the question placed before it. A strong binding ruling request therefore does three things: it states the facts with precision, identifies the legal question cleanly and asks for an answer that will still be useful when the client acts.
A weak request can be worse than no request. It may invite a negative answer, leave the real issue unresolved, or bind the client to a factual description that does not match the transaction.
The ruling is won or lost before the form is filed.
When to seek a binding ruling.
- Relocation from Denmark and cessation of full Danish tax liability
- Exit tax on shares, options or founder interests
- Cross-border restructurings
- Tax-free share exchanges, mergers, demergers or contributions
- Sale of shares, earn-outs or staged consideration
- Employee incentive schemes and option plans
- Family transfers, gifts and succession planning
- Real estate transfers and valuation-sensitive dispositions
- Classification of foreign entities or distributions
- UAE or foreign structure interacting with Danish tax law
When a binding ruling may not be the right tool.
Facts are not ready
If the client cannot describe what will actually happen, the ruling may not protect the later transaction.
The question is too broad
A broad question may produce an answer too general to be useful.
The issue is factual, not legal
If the matter turns mainly on evidence or credibility, a ruling may not solve the problem.
Timing is too urgent
The Tax Agency normally responds within 3–6 months. If the transaction must close immediately, another strategy may be needed.
A dispute already exists
Where the authority has already taken a contested position, appeal or dispute strategy may be more appropriate.
How the ruling matter is managed.
Transaction review
We review what the client proposes to do and why certainty is needed.
Question framing
We define the exact tax-law question and whether the ruling should address one issue or several.
Fact statement
We draft the facts in a form that is complete, accurate and capable of being implemented.
Legal analysis
We prepare the Danish legal analysis, including authorities, practice and alternative arguments.
Submission
We submit the request, coordinate the fee and manage questions from the Tax Agency.
Outcome and implementation
We review the ruling and advise how the transaction must be executed to remain within the answer.
Fee and timing.
The Danish Tax Agency’s current guidance states that a binding ruling costs DKK 500 and that the normal response time is 3–6 months. Complex, principled or document-heavy matters may take longer.
Do not use the expected processing time as a transaction deadline. Use it as a planning assumption.
Common questions.
Is a binding ruling binding on the Danish Tax Agency?
Yes, subject to the facts presented and the transaction being carried out as described. If the facts change, the protection may not apply.
Can I ask about something already done?
In some cases yes. The Tax Agency allows questions about actions the taxpayer intends to take or has already taken, but the usefulness of a ruling after the event must be assessed.
How long does a binding ruling take?
The Danish Tax Agency states that a normal response time is 3–6 months. Complex matters may take longer.
What does a binding ruling cost?
The current fee is DKK 500. Moore Law’s professional fees are separate and depend on the scope of the ruling request.
Can a bad ruling request harm the client?
Yes. A poorly framed question can produce an unhelpful or negative answer, or fail to cover the transaction as implemented.
Related: Tax cases · Tax residency & exit tax · International taxation · Company law · M&A and joint ventures · Contact the Danish practice.
The binding-ruling fee and timing should always be checked against current Danish Tax Agency sources before an application is made.
- Danish Tax Agency — Binding ruling
- Danish Ministry of Taxation — 2026 fee table
- Danish legal guidance — Binding ruling fee
External government and institutional sources. Programme figures and regulatory positions should be verified against these before they are relied upon.