Denmark introduces tax incentives for hydrocarbon activities

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The Danish government on 26 June 2017, published a draft bill regarding tax incentives for the Danish hydrocarbon activities. The draft bill is subject to a public hearing (consultation) until 14 August 2017.

As a result, Danish hydrocarbon companies and branches are taxed according to the following rules:

  • 22% corporate income tax rate applies to other income;
  • 25% tax rate applies to Hydrocarbon Chapter 2 corporate tax income; and
  • 52% tax rate applies to Hydrocarbon Chapter 3A income.

The new proposal introduces a new chapter 3B, which provides for additional deductions for the calculation of Chapter 3 A taxable income.

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