Changes in the rules for the use of the research scheme

Date 11 feb. 2011

 

The Danish Parliament has passed a new act concerning a change of the Withholding Tax Act which causes a change in the rules for the so-called research scheme.

 

Conditions for the use of the scheme

In order to be able to make use of the scheme, it is now a requirement that the person who wishes to use the scheme has not been fully or partly tax liable in Denmark within the last 10 years. With this, a significant tightening of the rules has been made, seeing as the rules prior to the change only stated that persons working under the scheme were not allowed to have been fully or partly tax liable in Denmark three years preceding employment in Denmark.

 

The act has not changed the additional conditions for the use of the scheme. It is therefore still a requirement that the following five conditions are met before the scheme may be used:

  1. the taxpayer must, upon employment, become fully or partly tax liable in Denmark;
  2. the employer must be fully or partly tax liable in Denmark;
  3. the taxpayer may not within the last five years have had an influence on the management of the company;
  4. the taxpayer may not, in a period for four years consisting of three years before and one year after the end of the Danish tax liability have been employed in the company or a group company; and
  5. the taxpayer must earn a monthly salary of at least 69,300 DKK (2010 level).

Taxation under the scheme

Apart from the above-mentioned changes in the conditions for the use of the scheme, the rules for taxation under the scheme change so that it is now only possible to be taxed with a fixed tax rate of 26 per cent for a total period of 60 months. Previously, it was possible to choose between a tax rate of 25 per cent for a period of 36 months or with 33 per cent for 60 months.

 

 

Should you have questions or wish further information about the amending act, you are welcome to contact partner, adjunct professor Jakob Bundgaard (jbu@mwblaw.dk) or junior associate Kim David Lexner (kdl@mwblaw.dk).

 

The above does not constitute legal counselling, and Moalem Weitemeyer Bendtsen does not warrant the accuracy of the information. With the above text, Moalem Weitemeyer Bendtsen has not assumed responsibility of any kind as a consequence of a reader’s use of the above as a basis of decisions or considerations.