In the future, international researchers and key staff will be able to work in Denmark for five years and only pay 33 per cent in income tax.

Would you like to score a large tax discount for three years or a smaller tax advantage spread over five years? This is the question international researchers and key staff will be asked in the future if they decide to live and work in Denmark, writes Berlingske Business.

The Danish Minister for Taxation Kristian Jensen is to extend Denmark's research tax discount, enabling companies to retain their key international employees for several years. Today, researchers and key staff often leave Denmark after three years on expiry of their period of entitlement to the special research tax.

"In the future the research tax agreement will run on two tracks. International researchers and key staff will be able to choose either a tax of 25 per cent over three years or a tax of 33 per cent over five years. This will encourage more foreigners to stay in Denmark for a longer period," says Kristian Jensen.

Today more than 2,100 persons are currently living and working in Denmark under the special research tax scheme. The government estimates that 25 per cent more persons will base themselves in Denmark under the scheme in its new form.

Kristian Jensen believes that it will be more attractive for international researchers and key staff to stay in Denmark for five years instead of three, despite the fact that the tax level is a little higher, at 33 per cent instead of 25 per cent.