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LEGAL NEWS - Danish government presents new 2025-plan: Exciting news for entrepreneurship and investments

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9. September 2016

With the 2025-plan, the government wants to enhance the incentive for investment and entrepreneurship by lowering taxes on equity- and capital income and by a tax deduction on investment in own capital resources for small businesses.

The government wants to reduce the lowest level of tax on equity income from 27 % to 25 %. Furthermore, the government wishes to implement a new “tax step” concerning equity income between 51.700 DKK (approx. 7.000 €) and 150.000 DKK (20.000 €). It will be possible for a shareholder’s spouse to use the new tax step, if the shareholder does not himself make use of the tax step.

In addition to this, it is suggested that capital income that exceeds 42.800 DKK (approx. 5.700 €) shall no longer be included in the top tax basis. The maximum tax rate on capital income is lowered from approx. 42 % to 37 % in an average municipality.

These changes will enter into force in 2017.

Tax deduction on investment in small businesses

By allowing tax deduction on investment in own capital resources, the government wishes to stimulate investment in small businesses.

Investment in a small company will allow the investor a tax deduction of half of the amount invested – though with an upper limit of 650.000 DKK (approx. 87.000 €) per year. The tax deduction will enter into force in 2017, provided that the EU grants the state aid approval. Sweden and Great Britain have similar arrangements.

For further information you are welcome to contact attorney Stefan Reinel ( ) or assistant attorney Sabine Glatz Taulov ( ) at NJORD Law Firm