The Danish tax authority (SKAT) has published draft guidance resulting from binding tax rulings issued in 2016 that tax losses incurred by the transferring company may not be distributed among the transferring and the receiving company in a tax-free demerger, but must remain in the transferring company. The guidance also applies in the case of a tax-free asset transfers and supersedes past guidance on the issue. Comments on the draft guidance may be submitted up to 26 May 2016.