Government proposes tax deduction scheme for investors

Boosting entrepreneurship is part of the 2020 growth strategy

Noma unseated from its number one position (photo: Antissimo)
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’.

Birthday gift: Queen Margarethe gets her own exhibtion (Photo: Danish Museum of National History)
Museums corner: Reign supreme: first the queen, then the tweens, next the machines
Margrethe II might have something to say about the line-up this month. For ...
Noma unseated from its number one position (photo: Antissimo)
World’s 50 Best Restaurants: Noma falls to third place
After spending four of the last five years in first place, Noma has droppe...
EADP have developed a spacecraft capable of deflecting an asteroid with very short warning time (photo: Urhixidur)
Armaged some funding! Danish NGO collecting funds for asteroid protection
The Danish NFGO, the Emergency Asteroid Defence Project (EADP), is currentl...
The pharoahe is ready to kill it with his rhymes (Photo: Krik Barvender)
Early-June music: In the hands of the pharoahe
Pharoahe Monch Wed 3 June, 22:00; Pumpehuset; 200kr Pharoahe Monch, a 42-...
More Copenhageners are ready to spend the big bucks on their holiday (photo: iStock)
Copenhageners travelling the most this summer
When it comes to forking out for a holiday somewhere, Copenhageners have th...
It might look like a bit of old rock, but it's a record breaker (official press photo)
World record-breaking piece of amber in Copenhagen
This week, House of Amber and Copenhagen Amber Museum are celebrating their...