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Danish Government and Parliamentary Parties Agree on Green Tax Reform and Extension of Increased R&D Deduction to 2022

15 December 2020

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Proposed Changes

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Denmark

The Danish Ministry of Finance has issued a release announcing that broad agreement has been reached between the government and various parliamentary parties to move forward with the government's green tax reform plan. The plan includes measures to increase the energy tax on CO2 emissions and to support green investment with increased deprecation. In connection with the agreement on green tax reform, agreement has also been reached to extend the proposed increase in the allowed deduction of R&D expenses to 130% for the 2020 and 2021 tax years so that it will also be available for 2022.