Global Daily Tax News, Denmark Planning Tax Reliefs For Start-Ups, (Jun 14, 2024)

The Danish Government has announced various tax relief measures aimed at supporting start-ups and entrepreneurs.

For companies that are not listed, dividends paid to shareholders will become taxable only when the underlying shares are sold.

The threshold for the 42-percent rate of tax on income from shares will be raised to income exceeding DKK80,000 (USD11,500), up from DK61,000, with the 27-percent rate applying below this threshold.

The Government is also proposing more flexible rules for initial public offerings; an increase to the maximum deduction for carried forward losses to DKK20m, up from DKK9.5m; and eased rules for shareholder loans and income tax-privileged employee share schemes.

Changes are also proposed to the special scheme for researchers and highly skilled personnel relocating to Denmark for work, which enables taxation at a fixed rate of 32.84 percent for seven years. Under the proposals, individuals with a salary of at least DKK60,000 per month will be eligible, down from DKK75,100 currently.

The Government is also proposing to raise the ceiling on research and development tax credits to DKK35m, up from DKK25m.

The plan, released only in Danish, includes a total of 41 tax and non-tax measures. The changes must first be approved by lawmakers.