Proposal to make it cheaper to transfer your company to your children: The government wants to lower the estate and gift tax (bo- og gaveafgiften) on family-owned businesses from 15% to 10%, making it cheaper to pass them on to children. As the value of the tax is based on the value of the company, the government also wants to introduce a fixed model of determining a company’s worth. This will make it simpler to calculate what you need to pay to pass on the company.
-
The tax was previously reduced from 15% to 5% during the Lars Løkke Rasmussen government (2017), only to be raised back to 15% by the Social Democrat government in 2019.
-
As part of the same proposal, the government wants to increase the tax deduction for research and development from 108% to 120% (until 2028) and simplify the procedures of inheriting a real estate business (from 2025). You will no longer be able to deduct the entire cost of computer software or costs related to know-how and patent rights in the same year (from 2025).
-
At the same time, the government will reduce the pool for business support by 900 million DKK to finance the tax cuts.
