On 9 June 2018 Denmark adopted Law on R&D Deductions in the Official Gazette. Law No. 722 of 8 June 2018 provides for an increase in the allowed deduction for R&D from the prior 100% to:
- 101.5% for the 2018 and 2019 tax years;
- 103% for the 2020 tax year;
- 105% for the 2021 and 2022 tax years;
- 108% for the 2023 to 2025 tax years; and
- 110% for the 2026 and future tax years.
Law No. 722 also provides that the depreciation deduction for machinery and vessels used in R&D may apply the increased deduction above.
The Law was adopted by the parliament on 1 June 2018 and applies from 1 July 2018.
