Denmark Drops ‘Phantom Tax,’ Cuts Taxes for Stock Investors

Denmark’s government agrees with five other parties in parliament to cut taxes for entrepreneurs and investors, to bolster the startup scene in the Nordic country and attract more talent to businesses, the economy ministry says.

• The plan scraps the so-called “phantom” tax where shareholders or founders are taxed on expected future earnings when a company is sold
• Initiative effectively lowers taxes on share income by changing the progressive taxation system
  • Under new plan, any share income under DKK80,000/year will get taxed by a rate of 27%, while anything above will be taxed with by 42%
  • Under current rules, the ...