New Action Plan On Regulation Of Multinational Companies

During the summer the Danish government has published a new action plan on regulation of multinational companies based in Denmark and in foreign countries. The government has concentrated the efforts on loss-making companies and companies with transactions in tax havens.

An analysis behind the action plan shows that 30 % of all foreign and 28 % of all Danish multinational companies have paid no company tax in Denmark in the period 2006-2008. There may be various reasons for this. The government points out that the lack of tax payments might be a consequence of the fact that the companies' transfer prices having been fixed to make sure that the company has no corporate profit in Denmark.