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Denmark: Tax incentive proposals in 2026 Finance Bill

Including reducing electricity tax to EU minimum for 2026 and 2027

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December 2, 2025

The Danish government in August 2025 published the 2026 Finance Bill proposing tax incentives, including eliminating value added tax (VAT) on books, reducing electricity tax to the EU minimum, and phasing out excise duties on coffee, chocolate, and confectionery. The bill also proposes immediate depreciation for software development payroll costs and adjustments to rural property taxation.

Consistent with the 2026 Finance Bill, the Ministry of Taxation in October 2025 introduced Bill L 24 to Parliament, proposing a reduction of the electricity tax to the EU minimum rate of 0.8 øre per kWh for 2026 and 2027.


For more information, contact a KPMG tax professional in Denmark:

Sebastian Houe | sebastian.houe@kpmg.com

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