This decision means seafarers working on ships flagged with the DIS will continue to pay no income tax, regardless of their nationality.

Danish Shipping has been advocating for this tax break to ensure the Danish flag remains competitive in the global market. The government's recent review of business support confirmed the retention of the DIS tax regime, much to the relief of the industry.

Anne Steffensen, the chief executive of Danish Shipping, expressed satisfaction with the decision, stating, "The government's choice to maintain the DIS scheme, or seamen's tax, shows they value Danish-flagged shipping and its significant contributions to Denmark."

Earlier this year, Danish Shipping had warned that removing the tax exemption could severely harm the industry, making it difficult for Danish shipping companies to compete internationally. The association argued that scrapping the measure would result in fewer Danish seafarers and vessels.

Steffensen noted, "The government has acknowledged our concerns. This decision brings stability to the framework conditions for Danish shipping. As Denmark's largest export business, we bring jobs and prosperity to the entire country. Today's announcement is a win for all of Denmark."

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The DIS scheme, in place since 1988, has helped Denmark become one of the top 10 shipping nations globally, with around 7,500 Danish crew members currently employed. Broad political support for Danish shipping has existed for many years, underscoring its importance to the nation's economy.