Denmark: Proposed changes to tax law in legislative program
Proposed changes within the area of tax law as part of the legislative program for the year 2024-2025
The Danish government has proposed changes within the area of tax law as part of its legislative program for the year 2024-2025. The program includes a number of proposed changes aimed at implementing the government's entrepreneurship strategies announced earlier in 2024.
Tax reductions for the entrepreneurial sector
- Removal of dividend taxation for unlisted portfolio shares
- Increase in the cap for deposits on share savings accounts
- Taxation upon disposal of newly listed portfolio shares
- Increase in the progressive threshold for share income
- Increase in tax credit for research and development (R&D) expenses
- Gross tax scheme for foreign researchers
- Increase in the deduction limit for carried forward losses
Changes in depreciation on software, know-how, and patent rights
- Removal of immediate depreciation for software acquired from January 1, 2025
- Removal of immediate depreciation for know-how, patent rights, and related rights acquired from January 1, 2025
- Permanent increase of the R&D deduction to 120%
Changes in foundation taxation
- Taxation of unutilized provisions
- Adjustment of the distribution obligation
- Elimination of losses in tax-free mergers
- Tax exemption for certain interest
Commitments to introduce future bills
- Generational transfers
- Easing the taxation of shareholder loans
- Amendment of the minimum taxation
- Transfer pricing rules adjustments
- Tax treatment of gains and losses on cryptoassets
Read a November 2024 report prepared by the KPMG member firm in Denmark
For more information, contact a KPMG tax professional in Denmark:
Lars Terkilsen | lars.terkilsen@kpmg.com
Caroline Bormlund Thomsen | caroline.b.thomsen@kpmg.com