Unlimited Employee Shares, Warrants And Options

On 26 August 2025, a draft bill was sent out, which, among other things, proposes to expand the scope of employee shares, etc. in start-ups and certain small and medium-sized companies. The bill is part of the implementation of the Entrepreneurship Package ("Iværksætterpakken") adopted on 21 June 2024.

Since 2021, it has been possible to grant employee shares, warrants and options in start-up companies for a value of up to 50% of the individual employee's gross annual salary within the special rules of section 7P of the Danish Tax Assessment Act. This makes it possible to defer taxation and obtain taxation as share income for the recipient. The introduction of a "50% limit" was a significant extension of the rules, as the general limit for allocations is 10% of gross annual salary, with the possibility of allocation of up to 20% under certain conditions. However, the challenge for new, smaller companies has often been that the need to make a valuation of the