The Danish Minister of Taxation has issued a press release that the government has reached a compromise and assured a majority in favour of a reform of the business taxation regime that will result in a tax reduction from the present 28% to 25%.

The business sector is largely in favour of the new tax structure.

The Confederation of Danish Industries finds that many constructive changes have been made since the original proposals were made public in January. Kim Munch Lendal, Managing Director of the Danish Chamber of Commerce, is also satisfied with the changes, which he sees as an indication that the government has been paying attention to criticism from the business sector. "It is definitely a step in the right direction, as the proposal is primarily targeting tax evasion," he says, adding that he is not sorry that tax relief is now only half what was originally proposed.

The tax intervention, the most comprehensive change in the business taxation structure for many years, had been criticised from many sides. In part because it would have had negative consequences for ordinary manufacturing entities and not only capital funds, which were the original targets.

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