The Danish Government on 30 August 2017 presented its draft budget for 2018. If adopted by parliament the provisions should be effective from 2018.
The following measures relate to corporate tax:
- Introduction of a corporate equity deduction.
- A phased increase in the current 100% R&D deduction. The proposed rates would be 103% in 2020; 105% for 2021-2022; 108% for 2023-2025 and 110% thereafter.
- An increase in the R&D deduction for life science.
- An exemption from dividend withholding tax for dividends distributed by Danish UCITS to non-resident investors.
- The introduction of share accounts for investments in SMEs. The maximum allowed amount of the share account would be DKK 500,000 and the value of the shares would be taxed at the rate of 1.25%.
- The abolition of the registration fee for merchant vessels.
