New Version Of Tax Provision In Denmark Expected By Autumn

07 Jul 2010

Tine Horwitz from Consortium for Global Talent (CGT) – a private secretariat funded by 15 Danish multinationals said that she expected a new version of tax provision to be introduced in Denmark by autumn. This opinion has been put forward in result of the current tax scheme which has affected the retaining of specialists in Denmark.

A special tax provision aimed at attracting highly-educated experts from abroad is failing to keep them in the country. According to data provided by CGT, out of 3000 specialists, only 50 decided to stay on after the tax break period. Under the current scheme, experts who move to Denmark pay just 31 percent of their income in tax which includes social contributions. If they stay is extended for another two years, the tax rate rises to 38.36 percent of their earnings. Also, an additional back-payment, 7.36 percent of their earnings over the first three years scares away many specialists.

Tine Horwitz expressed disappointment due to the failure of the scheme and has called for a better way to retain specialists in Denmark. The CGT has joined up with lobby groups and public sector bodies to create a better scheme for attracting and retaining overseas specialists.