Extension of specialist tax regime

Today a bill was passed to extend the attractive specialist tax regime to 7 years and the gross tax rate to 27%.


As part of the business package that was agreed between the Danish Government and two of the other political parties, a bill to amend the specialist tax regime was recently introduced. Today, the bill was adopted by the Danish Parliament. In future, employees may be eligible for taxation under the regime for up to 7 seven years at a rate of 27%.

When also taking into account the effect of labour market tax of 8%, the increase of 1 percentage point from 26 to 27% means a 0.92% increase in the effective tax rate from 31.92 to 32.84%.

The amendments will become effective from 1 January 2018.

In Norrbom Vinding's view, the provision on the effective date of the amendments must be taken as meaning that the amended specialist tax regime will also apply to an employee who is currently taxed under the regime if, on 1 January 2018, he or she has at least one day left of the 5-year period that applied under the former regime.

An employee who joined the regime on 2 January 2013 or later will therefore be eligible to participate in the new regime and have another 2 years at the low tax rate. Regardless of whether the employee wishes to use such longer period, the employee will be taxable at 27% after payment of labour market tax with effect from 1 January 2018.

The content of the above is not, and should not be a substitute for legal advice.

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