Welcome news for investors is a decision by the Danish government to lower corporate and other business taxes gradually over the next three years.
A growth plan, estimated at generating 75 billion DKK includes the lowering of corporate tax to 22 per cent by 2016. Tax credits, reducing energy tax and public investment are other means aimed at improving international competitiveness, according to the announcement.
Minister for Trade and Investment Pia Olsen Dyhr says, “We are constantly working to improve the conditions for doing business in Denmark and I am very pleased that the Danish government can now launch these significant amendments which will make it even more attractive to run a business in Denmark.”
The plan has budgeted DKK 1bn towards improving education and the workforce. Extension of VAT credit periods for companies, as well as growth loans for entrepreneurs, is also part of the initiative.
Denmark is already considered one of the best places in the world for ease of doing business, according to a survey among international businessmen, and the government aims to build on this. Initiatives to increase innovative and a goal-orientated economy is a key objective.
Along with the rest of Europe, Denmark has suffered stagnant growth and persistently high unemployment in recent years, but its public debt (45 per cent of GDP) remains manageable and can accommodate the investment in growth.