Denmark: Domestic Corporate Taxation
Denmark has high rates of personal income tax and is in the mid-range in terms of corporate tax, and has never been considered a financial centre. However changes to its holding company law in 1999 provided outstanding opportunities for the international investor, and subsequent adjustments to the law have if anything increased its attractiveness.
Historically, 9 onshore European countries (Austria, Belgium, France, Germany, Luxembourg, the Netherlands, Spain, Switzerland & the United Kingdom) have competed and continue to change their fiscal laws in order to make their jurisdiction the most attractive one in which to locate a holding company.
Nonetheless changes to the laws on Danish holding companies which were introduced in 1998-9 revolutionized the market and made Denmark far and above the most attractive location in which to site a holding company, with the twin consequences that the Netherlands' historic dominance of the onshore holding company market has been seriously threatened and other holding company jurisdictions were made to look singularly unattractive.
In Denmark there are also some time-limited tax-saving opportunities for expatriate managers and skilled workers.