Denmark plans to reduce corporate tax level to 22 per cent

By lowering corporate taxes by 6 per cent from the present 28 per cent, as the government proposes, Denmark will leapfrog a number of countries in the corporate tax table.

The Danish government has proposed a bill to lower the Danish corporate tax by 6 per cent from the present 28 per cent. The tax reduction is worth an estimated EUR 1.5 billion to corporate Denmark and is well below the EU average, which has already fallen with the entry of new member countries into the EU, and ahead of countries such as Sweden, Finland and Norway.

A tax expert has no doubt that such a reduction will make Denmark more attractive to international investors and multinational companies considering where to locate a Nordic head office or whether to take over a Danish company.

”A reduction in corporate tax is something that will be felt and will without any doubt add marketing value to Denmark. When investors compare tax conditions in Denmark with those of other countries, they look at corporate tax levels,” says Torben Wolsted, partner with PricewaterhouseCoopers’ tax department, to Danish financial daily Børsen.

Source: Børsen, 26.01.2006.

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