New agreement to strengthen the business environment
The Danish government and political parties have reached a concensus on an agreement to strengthen the Danish business environment. The agreement includes both new initiatives and the removal of already exisiting business support schemes.
The new agreement includes:
- Incentive to invest in research and development with a 120% Forskning og Udvikling (FoU) deduction.
- Improvement of taxation related to generational succession, granting a right to a schematic valuation.
- Enhanced opportunity for succession in property businesses.
- Reducion of the inheritance and gift tax from 15% to 10% for business transfers to the next generation.
- Better guidance on generational succession for small and medium sized family businesses.
- Siblings are equalled to near family members when receiving gifts so that siblings will pay 15% of the amount that exceeds the deduction free amount.
The government had considered to abolish the DIS scheme while keeping the tonnage tax scheme, however; the final result did not interfere with the DIS scheme.
Political Reactions
Ministers and spokespersons from various parties have expressed their satisfaction with the agreement, highlighting its potential to secure Denmark’s leading position in green technologies and health, as well as its importance for family-owned businesses that contribute significantly to economic growth and job creation in Denmark.
The agreement is seen as a crucial step towards investing in Denmark’s future, ensuring that family-owned businesses can continue to thrive and remain in Danish hands. It is a testament to the government’s commitment to fostering a robust business environment that can adapt to changing global conditions and continue to innovate for a sustainable future.
