New tax legislation adopted by the parliament

29 December 2017

With 2017 drawing to a close, several of the bills proposed by the Danish government in connection with the opening of the current session of the Danish parliament have been adopted by the parliament.

Among the government’s intended tax legislation highlighted in the October 2017 issue of tax:watch, the following bills have so far been adopted by the Danish parliament:

  • As part of the so-called North Sea Agreement, a bill has been adopted abolishing the scheme of a permanent interest-free loan to export businesses corresponding to a share of their negative VAT.
  • A bill has been adopted allowing businesses deductions for salary expenses of their own employees regardless of the work performed. The purpose is to extend the right of deduction for businesses’ wage expenses etc. in connection with the establishment, restriction or extension of the business.
  • A new Tax Control Act, a new Reporting Act and a limitation of the Danish tax authorities’ ability to withdraw binding rulings on valuation of assets have been adopted as part of the government’s initiatives to strengthen the rule of law with regard to taxation.
  • Certain tax rules for pension savings have been adopted, including a reduction of the possibilities for contributing to certain pension schemes, but also to extent the maximum pay-out period for retirement pensions that are payable in instalments from 25 years to 30 years.
  • The registration Tax Act has been amended in order to implement a concluded political agreement on the conversion of car taxes.
  • A double tax treaty between Denmark and Azerbaijan has been ratified by the parliament.

Another bill that has been adopted by the Danish parliament expands the Danish tax scheme for inbound expatriates from 5 to 7 years against an increase in the total tax rate of 0.92 pct. as described in the November 2017 issue of tax:watch.

The above article is taken from tax:watch, our electronic English newsletter on Danish Tax and VAT matters. tax:watch is issued on the last Friday of each month and is free of charge. Please sign up here.