Denmark: Employee share scheme rules expanded and relaxed

Denmark has expanded and relaxed its tax‑advantaged employee share scheme rules under section 7 P of the Danish Tax Assessment Act. An amendment adopted in late 2025 broadens eligibility beyond start‑ups to a wider group of “new and smaller” companies and removes the former cap limiting share‑based remuneration to 50% of an employee’s annual salary. The changes make it easier for companies to offer equity‑based compensation under favourable tax conditions, with taxation deferred until the shares are sold and taxed as share income rather than salary.

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