The proposals included the implementation of the OECD Pillar Two minimum taxation agreement, changes to corporate taxation and VAT, and new environmental duties. The programme also outlined personal tax relief measures and changes to property and vehicle taxation for the 2026–2027 parliamentary year.
Denmark published its Legislative Programme for 2026–2027 on 8 October 2026, setting out 22 legislative bills under the Ministry of Taxation and other proposed legislation covering tax and related matters.
The proposals cover the implementation of the OECD Pillar Two minimum taxation agreement, changes to corporate taxation and VAT, personal tax relief, environmental duties and vehicle taxation. Other measures would address tax avoidance, property taxation and the taxation of digital platforms.
Corporate taxation and international tax rules
Several proposals would change corporate taxation, the treatment of financial contracts and measures to prevent tax avoidance.
Denmark plans to replace the current asymmetric tax treatment of cryptocurrency assets with a revised system designed to simplify tax calculations and payments. Another proposal would address triple taxation arising when the Tax Administration reclassifies the rightful recipient of business income.
The programme also includes legislation to implement the OECD Pillar Two minimum taxation agreement. Additional measures would expand limited tax liability on interest and capital gains to counter tax avoidance, update the list of non-cooperative tax havens subject to defensive measures and amend the tonnage tax regime.
Businesses entering into long-term price-hedging contracts linked to their primary operations would be allowed to use realisation-based taxation instead of mark-to-market or inventory-based taxation. This option would apply to contracts lasting at least three years.
A proposed taxpayer deposit scheme would allow taxpayers to deposit disputed amounts while court appeals initiated by the ministry were ongoing. This would stop further interest from accruing on the relevant claims.
The programme also proposes abolishing corporate tax exemptions for state and municipal ports to align the rules with EU state aid requirements.
Separate legislation would implement tax initiatives included in the June 2026 Government Platform by amending personal tax, corporate tax and share savings tax legislation.
Consumption taxes and personal tax relief
The main tax reform package proposes abolishing the national coffee tax and introducing zero-rate VAT on books.
Senior workers would benefit from an increased extra employment tax credit. The eligibility period would be extended from two years to five years before the state pension age.
The package also proposes a new deduction for sports and exercise activities and music lessons.
For inheritance taxation, the additional estate tax on inheritances received by nieces and nephews would be abolished. The standard tax deduction for home daycare providers would increase to 65%.
Other measures would improve deductions for payroll expenses associated with in-house software development and expand tax-free reimbursement arrangements for certain volunteer workers.
Property-related changes would include an exemption from variable registration duty when secondary real estate is added to an existing joint mortgage. Small electrical transformer stations would also be classified as operating equipment and inventory for tax purposes.
Environmental taxes and road charges
The programme proposes several environmental tax measures covering agricultural emissions, wastewater, water consumption and greenhouse gases.
A new tax on CO2e emissions from carbon-rich agricultural soils would support land retirement under the Green Denmark Agreement.
The proposed measures also include a tax on untreated wastewater overflows and the removal of tax deductions for delay basins from 2027. The tax on piped water would be reduced from 2029.
The CFC/F-gas tax would increase to DKK 750 per tonne of CO2e, expressed in 2022 prices, from 2027.
Separately, Denmark plans to extend the kilometre-based heavy vehicle road toll to motor vehicles weighing between 3.5 and 12 tonnes.
VAT and consumption duty changes
The proposed VAT reforms focus on digital platforms, cross-border transactions and copyright licensing.
Denmark plans to implement EU rules requiring digital platforms to collect VAT on short-term accommodation rentals and road passenger transport.
Other legislation would introduce EU VAT arrangements designed to reduce the need for businesses to register for VAT in multiple countries when conducting cross-border sales. These measures would also strengthen the correct collection of VAT on e-commerce distance sales made by non-EU sellers.
The programme also proposes increasing the VAT exemption threshold for licensing copyrighted works by authors, artists and their heirs.
Changes to gambling taxation would tighten restrictions on gambling marketing. The programme would also reduce the reimbursement rate applicable to corporate excess tax payments.
Property and vehicle taxation
Property owners who experience delays in receiving official property assessment notices would benefit from a proposed interest compensation scheme.
The programme also proposes introducing a licensing system for commercial vehicle leasing companies operating under proportional registration tax.
Outside the Ministry of Taxation, separate legislation would amend the DSB Act to ensure that DSB’s transition to a fully automated, driverless S-train network did not trigger adverse tax or VAT liabilities in its capacity as owner and infrastructure manager.
Overall, the legislative programme outlines proposed changes to household taxation, corporate tax rules, environmental charges and indirect taxation during the 2026/2027 parliamentary year.
