Denmark is in danger of losing investment to its neighbour across the Øresund Sound unless it acts to cut corporation tax, argues the Danish confederation for industry, Dansk Industri (DI).
The Swedish reduction from 22 to 20 percent will take effect from July 2018 and is a result of implementing the findings of a tax commission that reported three years ago.
“Besides Denmark, Sweden is an obvious alternative country to invest in. We can’t afford not to have a competitive corporation tax rate compared to the countries around us, and that goes especially for Sweden,” said deputy head of DI, Kent Damsgaard.
Must remain competitive
The last time Denmark lowered corporation tax it was also as a result of similar cuts in Finland, the UK and Sweden. Norway has subsequently followed suit.
This year has seen the most – and largest – reductions of corporation tax in Europe for almost a decade.
“Including Sweden, at least eight countries in the EU’s inner market have corporation tax reductions on the agenda for the next few years. The UK is on the way to having a rate of only 17 percent in 2020, and new French president Emmanuel Macron was elected on the basis of a program that includes marked reductions in corporation tax.”
DI hopes that a tax reduction will be one of the results of the forthcoming discussions in the autumn regarding economic growth in Denmark.