Denmark – Japan Tax Treaty
The Denmark-Japan tax treaty caps withholding on dividends at 15% for portfolio investors and 0% for qualifying direct investment, and interest at 10%. Royalties are taxed at a uniform 0% across all categories. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 36 active treaties in Denmark's network and one of 47 in Japan's. The general dividend rate of 15% compares to a median of 15% across Denmark's network and 15% across Japan's.
Verified data
Skattestyrelsen (skat.dk) - Tax Treaties overview and individual treaty texts (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12). Note: Denmark has 0% domestic WHT on interest but 22% on royalties paid to non-treaty residents.)
Withholding Rate Summary
Source: Denmark Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Denmark) |
|---|---|---|
| Dividends (general) Portfolio investors | 15%saves 12% | 27% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 0%saves 27% | 27% |
| Interest Bank interest, bonds, loans | 10% | 0% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 0% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Denmark)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 15% applies to portfolio investors. A reduced rate of 0% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 27%.
Source: Denmark Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 10% withholding under this treaty, compared to the 0% statutory rate. This represents a no reduction from the statutory rate.
Source: Denmark Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 0% to 0%.
Source: Denmark Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Denmark Treaty Reference
Comparative Context
🇩🇰Denmark's Network
Among Denmark's 36 active treaty partners, the 15% general dividend rate ranks 20th (median: 15%).
| Partner | Rate |
|---|---|
| Ireland | 15% |
| India | 15% |
| Italy | 15% |
| Japan (this treaty) | 15% |
| South Korea | 15% |
| Luxembourg | 15% |
| Netherlands | 15% |
🇯🇵Japan's Network
Among Japan's 47 active treaty partners, the 15% general dividend rate ranks 25th (median: 15%).
| Partner | Rate |
|---|---|
| Colombia | 15% |
| Czech Republic | 15% |
| Germany | 15% |
| Denmark (this treaty) | 15% |
| Spain | 15% |
| Finland | 15% |
| Indonesia | 15% |