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Long Term Investments are Based on Stability
 

It is critical that foreign companies perceive Denmark's tax regulation as fair, stable and competitive.

Foreign companies operating in Denmark are vital to the Danish economy and welfare system. Statistics coming out of the Ministry for Business and Economic Affairs drive this home. Here’s a quick overview: though comprising only 1% of private sector companies, foreign companies employ 19% of the private sector workforce and are responsible for 24% of all private sector turnover. Furthermore, foreign companies make up 27% of exports – a key factor in the strength of the Danish economy.

But to ensure that foreign companies maintain and increase investments in Denmark it is critical that there is continuity in regulations regarding taxation and rules concerning corporate operations and practices. Denmark has a history of changing rules in the middle of the game and often making them retroactive. This type of behavior creates the perception that Denmark is not a stable environment in which to invest despite some reports to the contrary.

Foreign companies base their investment decisions on a long term outlook. If they are unsure when and how the Danish government is going to alter tax regulation, they will palce their investments elsewhere - an outcome the Danish economy cannot afford.

Børsen May 7, 2010: AmCham Speaks Out on Behalf of Foreign Companies

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