The Danish government’s growth package 2014

26 September 2014

A growth package introduced by the Danish government includes several tax initiatives.

During the summer holiday, the Danish government came to terms with the opposition with regard to several ”growth initiatives” including a number of tax initiatives.

The initiatives will be implemented during the autumn and winter of 2014.

Tax initiatives

  • Duties will be increased on cigarillos, cigars and cheroots
  • Commuter deductions to commuters in the so called outlying communities will be increased
  • Regulations for the taxi trade will be simplified • Businesses VAT payments will be simplified
  • Businesses VAT deduction for hotel overnight stays will be increased
  • A business taxation committee will be established
  • The basic terms for offshore ships will be strengthened
  • Reduced time consumption in connection with credit evaluations

• Relaxation of dividend taxation for Danish companies.

Relaxation of the dividend taxation for Danish companies involves a reduction of the taxation on dividend received from unquoted portfolio shares.

The relaxation will include dividend from all unquoted portfolio shares which can be sold tax exempt. The relaxation entails that only 70 pct. of the dividend must be included in the taxable income opposite to the present rules according to which 100 pct. must be included.

Consequently the taxation will be reduced from 24.5 pct. in 2014 to approximately 16 pct. in 2015 and 15 pct. in 2016.