The transfer pricing documentation must be submitted to the Danish Tax Agency every year

3 December 2020 a new bill was passed in the Danish Parliament. The bill requires taxpayers to submit the transfer pricing documentation package (both Master File and Local File) to the Danish Tax Agency no later than 60 days after the tax return deadline. Every year.

The new legislation will be effective for income years beginning on or after 1 January 2021 with respect to the transfer pricing documentation.


Summary of the new legislation

The new legislation provides two substantial changes compared to the regulation currently in force:

  • The transfer pricing documentation must be submitted to the Danish authorities no later than 60 days after the deadline for filing of the tax return.
  • If a taxpayer fails to submit the required transfer pricing documentation by the deadline, the  Danish Tax Agency may reassess the taxable income by way of a discretionary assessment.

The content requirements to the transfer pricing documentation continue to follow the OECD Transfer Pricing Guidelines.

It will be highly advisable to ensure the full and complete finalisation of the transfer pricing documentation no later than at the time of filing the tax return.



The consequences of failing to submit a timely and otherwise compliant transfer pricing documentation includes risk of penalties and a discretionary assessment.

In general, the starting point for such penalties is DKK 250,000 (approx. EUR 33,330) per income year per entity and a fine of up to 10% of any increase in income. In addition, the new transfer pricing legislation introduces the possibility of daily fines until documentation is submitted.


KPMG observes

The purpose of Bill No. L28 is to ensure that adequate transfer pricing documentation is available at the time of the tax return, and risk of penalties and discretionary assessments are certainly designed to provide incentives to that end.

Therefore, it is highly advisable to ensure timely completion of adequate documentation, i.e. a fully compliant master file and a local file no later than at the time of filing the tax return.

Want to know more?

For more information, please contact a professional with KPMG’s Global Transfer Pricing Services practice in Denmark:

Partner, Transfer Pricing Simon Schaadt

Partner, Transfer Pricing Henrik Lund

Partner, Transfer Pricing Holger Haugstrup

Partner, Transfer Pricing Peder Reuther