Global Daily Tax News, Denmark Tables Bill To Enhance Employee Share Scheme Tax Rules, (Aug 29, 2025)

The Danish Government has tabled draft legislation for consultation that would, among other things, expand the scope of tax reliefs for employee share schemes.

The rules for employee share schemes are to be significantly relaxed. Currently, companies are able to pay to their employees, tax-free, shares of the company equivalent to up to 50 percent of their salary, providing the company is no more than five years old, has up to 50 employees, and its net turnover/balance sheet total is up to DKK15m (USD2.35m).

The legislation would remove the 50 percent-of-salary limit, allow companies no older than 10 years to offer employee share schemes, and additionally increase the number of employees and balance sheet total to 150 and DKK200m, respectively.

The legislation further provides for the suspension of the carbon tax on fishing businesses during the period 2026-28 and for the tax to be phased in starting from 2029. It will apply at a rate of DKK375 per tonne of carbon dioxide from 2029, before being aligned with the general tax level of DKK750 per tonne of CO2 from 2030.

Other amendments included in the Bill include a new VAT exemption for education provided to persons aged under 30 and changes that are intended to improve the interaction between the collection and recovery of companies' residual tax.

The legislation is proposed to become effective from January 1, 2026. Comments are being sought by September 25, 2025.