On 25 February 2021, the Government submitted a draft Bill, L 178, in the Parliament, which is a proposal for an Act amending the Depreciation Act, the Tax Assessment Act, the Pension Returns Taxation Act and the Sulfur Tax Act. The draft bill includes:
- The bill proposed to increase the immediate depreciation limit for smaller companies from DKK 14,100 to DKK 30,000 in 2021 for investments in new and green operating assets such as, machinery, equipment, etc.
- The companies will be able to depreciate by 116% of the purchase price when purchasing new fixed assets in the period from 23 November 2020 until the end of 2022. However, the investment window does not include machines powered by fossil fuels, as well as passenger cars and ships.
- According to the Bill, an extension of the 130% deduction for R&D expenses is proposed until the end day of 2022.
- Finally, it is proposed to extend the basic deduction in the basis for companies’ payment of sulfur tax for coal and coke, etc. until 2025.
