In a new political agreement, several measures have been introduced to make life easier for entrepreneurs, including the removal of the controversial entrepreneur tax. According to the Ministry of Business, the agreement, which the government has entered into together with the Denmark Democrats, Liberal Alliance, The Conservatives, The Radicals, and the Danish People’s Party, also includes a reduction in the tax on dividend income. Minister of Business Morten Bødskov (S) expressed great satisfaction with the agreement at a press conference on Friday. “Denmark should be a world-class entrepreneurial country,” said the minister.
The entrepreneur tax, which is being removed in connection with the agreement, has so far included tax on companies’ dividends from unlisted portfolio shares, meaning ownership stakes of less than ten percent of a company. The tax rules for dividend income have also been adjusted; previously, a tax of 27 percent was paid on dividend income up to 61,000 kroner, while anything above that was taxed at 42 percent. The new agreement raises this threshold to 80,000 kroner.
In total, the agreement includes 46 initiatives designed to make it easier to be an entrepreneur in Denmark.