Thursday, August 23, 2007

Denmark to Cut Income Taxes


Under the proposed reforms, announced by the government on Tuesday, the income ceiling for the middle and top income tax brackets will be raised to DKK353,000 per year from DKK304,100, and to DKK381,300 per year from DKK365,000, respectively.

The government is also proposing to raise the employment tax deduction, which is subtracted by all working wage earners, to 4.7% from 2.5%.

Some of these tax cuts would take effect on January 1, 2008, with the total tax cut package coming into force on January 1, 2009.