The intended tax legislation and legislation of general interest to businesses operating in Denmark is of a relatively modest scope.
Among these, the following can be highlighted:
1. The Minister of Taxation is expected to propose a bill that will make it possible for the authorities to require that large multinational companies make so-called country-by-country reporting of their income and tax payments. Further, the OECD global standard for the reporting and exchange of account information will be implemented.
2. The special tonnage tax scheme will be expanded in order to include a number of special vessels. Subject to minor alterations, this is basically a proposal originally conceived by the previous government.
3. The government will, with effect from 2016, restructure various business support systems - both direct business support and tax-based support – into other initiatives designed to improve the framework conditions for businesses operating in Denmark. Further elaboration will be presented by the government.
The government will also implement a reform to improve investment opportunities by ensuring a more neutral and balanced taxation of business income.
4. Further, the Minister of Taxation will present two initiatives to strengthen the legal rights and due process of tax payers.
The first initiative abolishes the authority given to the Danish tax authorities to inspect construction work on private property.
The second initiative is expected at the end of February 2016 and will - among other things - contain a proposal for the reinstatement of rules allowing companies etc. to receive reimbursements from the state for costs to advisors in cases concerning tax and VAT.
The list of legislative initiatives intended by the Danish government is not exhaustive.
Only the legislative initiatives that can be expected to be proposed with a reasonable degree of certainty are included.
As in previous years, the Minister of Taxation as well as other ministers will undoubtedly propose legislation not included in the presented program.
It is important to note that the above described legal initiatives are only intended proposals for new legislation.
It cannot be ruled out that there will be changes due to political negotiations, and there may be proposals which will not be adopted by the Parliament.
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.