Government proposes tax deduction scheme for investors

Boosting entrepreneurship is part of the 2020 growth strategy

June 11th, 2014 10:15 am| by admin
facebooktwittergoogle_pluspinterestmail

The Danish government has suggested a new tax deduction scheme primarily aimed at investors in small, privately-held companies, according to a factsheet released by the Tax Ministry.

The government wants to encourage entrepreneurship, but in the current climate, many young businesses spend more time on investor pitches than on developing their product. Sometimes they get so demotivated they end up not even starting the company.

The historical practice of banks being the primary source of funds and investments for companies doesn’t help either, as it has left the market for private venture capital underdeveloped.

Over half a million kroner
With the new tax scheme, investors will be eligible to receive up to 650,000 kroner in tax deductions annually, making it easier for small businesses and startup companies to secure venture capital.

The proposal includes a provision for an immediate relief of 300 million kroner a year, but won’t come into effect until 2016 when it will be matched with EU rules on state aid.

The Tax Ministry estimates that the proposal could increase the GDP by 0.1 billion kroner by 2020.

The scheme is part of Europe’s growth strategy for the coming decade, ‘Europe 2020’.

What lies beneath: the future ownership of the region could determine whether it stays there (photo:istock)
Jockeying for position in the Arctic, affairs remain cool … for now
  As the ice melts in the Arctic, the potential for conflict among ...
(photo: istock)
December referendum
  On Thursday December 3, the Danes will be invited to the ballot b...
The radio shop was the birthplace of the Holger Danske I resistance group (photo: Facebook/Stjerne Radio)
Wartime street party on Istedgade tomorrow
If you’ve ever walked through the city and wondered what it would have lo...
The winning designs can potentially solve a global problem in a sustainable manner (photo: Index Awards)
Winners found in sustainable Danish design awards
The prestigious Index Awards, the Denmark-based world's leading design awar...
Morten Duncan Rasmussen and the Wolves will have to be at their best to progress from Group D (photo: FCM)
FC Midtjylland draw Italian giants in Europa League
The Danish champions FC Midtjylland have been drawn in the same Europa Leag...
As much as 80 percent of companies’ costs are related to their supply chains (photo: iStock)
DI helping Danish companies to tighten the supply chain
The Danish industrial interest organisation Dansk Industri (DI) has launche...