G.S.R. 316.-While the attached Convention for the Avoidance of Double Taxation of Income has been ratified between the Governments of India and Denmark and the instruments of ratification have been exchanged in accordance with Article XX of the said Convention, you will be taxed on your interest and/or dividends when you move to Denmark. Your tax can be reduced if Denmark has a double taxation agreement with the country you are leaving. To avoid double taxation of income, Denmark has concluded DTTs with a large number of countries. All tax treaties contain rules for the exchange of tax information and specific EU rules also apply. Double taxation can also occur with regard to inheritance tax. To remedy this situation, Denmark has concluded agreements in this regard with the other Scandinavian countries, Germany, Italy, Switzerland and the United States. Countries with which Denmark currently has SDRs and in which the treaty contains a remuneration clause: this is a change from the usual structure of double taxation treaties, under which the country of residence reduces its taxes in order to avoid double taxation. Denmark has concluded double taxation treaties with a number of countries. These agreements were concluded to ensure that the same income is not taxed both in Denmark and abroad.
You will not be taxed on savings or assets you bring from abroad if you move to Denmark, but you will be taxed on savings income and/or dividends. If Denmark has a double taxation agreement with the country you are leaving, your Danish tax can be reduced. I should be grateful if you would confirm your agreement with the above-mentioned understanding of the provisions of Article VI of the above-mentioned agreement and, in that case, that remark and your reply would be considered part of the agreement. While the governments of India and Denmark want to conclude an agreement to avoid double taxation of income In accordance with the new convention, it has been agreed that Denmark will reduce Danish taxes on pensions by an amount equivalent to French taxes in exchange for the right to tax the pensions of pensioners residing in France. Competent authorities shall exchange information (i.e. information available to them under their respective tax laws) necessary for the implementation of the provisions of this Agreement. All information thus exchanged shall be treated in secret and may not be disclosed to persons other than those responsible for the fixing and collection of the fees which are the subject of this Agreement. The competent authority of either zone may not exchange information in the above-mentioned case that would disclose to the authority of the other region trade, commercial, industrial or professional secrets or trade procedures. . . .