Nykredit's tax policy

We are committed to transparency and responsibility in relation to our tax affairs. Nykredit's tax policy applies to the Nykredit Group and to Danish as well as international activities.

Responsibility

Nykredit pays taxes in accordance with the legislator's expectations and our tax liability. Hence, it is Nykredit's policy to run a competitive business while being a responsible taxpayer.

We are committed to transparency and responsibility in relation to our tax affairs for the purpose of complying with current tax legislation and conforming with best practice in the area. Nykredit supports international initiatives aimed at promoting transparency, thereby underpinning the UN Sustainable Development Goals in the area.

Nykredit aims to have a transparent tax policy, implying that we should always be able to explain and justify any transactions undertaken for tax purposes.

By collaborating and communicating openly with the tax authorities, we seek to avoid unintended tax implications of transactions for Nykredit, and for our customers. In case of doubt, we will to the extent possible seek to obtain clarification, for instance through binding decisions and advance approval from the tax authorities, so as to mitigate the risk of unintended errors.

Active effort to combat money laundering and tax evasion

Nykredit's stance on money laundering and tax evasion is clear: Nykredit will not support or participate in any activities which, to Nykredit's knowledge, involve money laundering or tax evasion, or attempted money laundering or tax evasion, nor will Nykredit set up or administer companies in tax havens as specified in the EU list of non-cooperative jurisdictions.

We see prevention of the misuse of Nykredit for money laundering and tax evasion as an essential part of our corporate responsibility, and we will use any necessary and proportional means to mitigate the risk of such misuse. Nykredit has therefore adopted a policy for the prevention of money laundering, terrorist financing and breach of financial sanctions. For the purpose of this policy, business procedures have been established, specifying which customer relationships and activities fall outside Nykredit's risk appetite.

When Nykredit enters into customer relationships, we carry out thorough know-your-customer procedures and detailed internal checks of customer and shareholder structures, collecting the necessary information and documentation on the customer relationship. This helps reduce the risk that Nykredit is misused for money laundering.

Nykredit wants to take active part in relevant forums and to actively interact with the authorities to prevent money laundering and terrorist financing, including tax evasion.

Nykredit's tax affairs

Nykredit's own tax affairs include corporation tax, VAT, payroll tax, wage earner taxes and other types of tax paid by Nykredit in Denmark as well as abroad.

Nykredit is committed to being a responsible taxpayer that always pays its taxes. Generally, Nykredit's tax payments are made where the income is generated – which is mainly in Denmark. Nykredit has opted for international joint taxation.

Nykredit's establishment and administration of investment entities

As part of its activities, Nykredit sets up and administers investment entities to be offered to Nykredit's customers. Even though these entities are not part of the Nykredit Group, they are treated for tax purposes as if they were and are subject to the policies and guidelines applicable to the Nykredit Group.

The tax affairs of Nykredit's customers

Nykredit's customer relationships are built on mutual trust, and we expect our customers to comply with current tax legislation. At the same time, we focus on monitoring transactions, taking action in case of discrepancies and reporting to the authorities in accordance with the tax and anti-money laundering legislation in force from time to time.

Advice about tax matters

Pursuant to the rules on good business practice for financial undertakings, Nykredit offers guidance and advice on tax matters in relation to the products and services which Nykredit offers to personal and business customers. Our advice is of a general and consultative nature and includes information on the tax liability in Denmark related to Nykredit's products.

Our advisory services may include discussions of the tax implications of transactions contemplated or effected, for instance in relation to property finance, pension savings, other savings and investment, or succession planning.

Generally, we do not make tax calculations on behalf of our customers but recommend customers to consult their own tax adviser or the Danish tax authorities for further tax advice, for instance in the form of binding answers.

Governance

Nykredit's tax affairs are managed on the basis of our tax policy, which is laid down by the Board of Directors. The tax policy covers the entire Group and applies to Nykredit's tax affairs as well as to the products and services offered by Nykredit to our customers. Nykredit has set up internal processes in the tax area that help ensure compliance with applicable legislation, up-to-date knowledge of best practice and consistency with our tax policy.