Denmark Publishes Laws on R&D Deductions, Cross-Border Merger Effective Date, Individual Income Tax, and PE Rules for Investments through Transparent Entities

Denmark published several laws in the Official Gazette on 9 June 2018, which are summarized as follows:

Law No. 722 of 8 June 2018 provides for an increase in the allowed deduction for R&D from the prior 100% to:

• 101.5% for the 2018 and 2019 tax years;
• 103% for the 2020 tax year;
• 105% for the 2021 and 2022 tax years;
• 108% for the 2023 to 2025 tax years; and
• 110% for the 2026 and future tax years.

Law No. 722 also provides that the depreciation deduction for machinery and vessels use…