Denmark is ranked 4th in the world for ease of doing business, but the 22% corporate tax rate and growing EU regulation shape the debate about what it takes to attract investment and foster entrepreneurship.
SUMMARY
Denmark is ranked 4th in the world for ease of doing business, but the 22% corporate tax rate and growing EU regulation shape the debate about what it takes to attract investment and foster entrepreneurship. Active businesses: 330,000+ (Danmarks Statistik 2023). Corporate tax rate: 22% (Skatteministeriet 2023).
CONTEXTThe corporate tax rate is the tax companies pay on their profits. Denmark's 22% is close to the EU average but significantly higher than Ireland (12.5%), which has attracted major tech giants. Lower corporate tax attracts investment but reduces tax revenue. Research shows that the effective tax burden depends on many factors beyond the nominal rate.
Newly registered businesses in Denmark (thousands)
CONTEXTThe number of newly registered businesses reflects entrepreneurial activity in Denmark. The COVID-19 period (2020-2021) shows an interesting contrast: activity fell in 2020, whilst 2021 saw a record rebound -- partly driven by online commerce and new business models. It is important to distinguish between new registrations and businesses that actually survive -- nearly half do not exist after five years.
PARTY POSITIONS
Importance shows how central this topic is to each party's platform.
Lower corporate tax, better start-up conditions and deregulation are the core identity. Wants to make Denmark the best country in which to run a business.
