Denmark has released Law No. 502 dated 16 May 2023 in the Official Gazette, which establishes the implementation of a temporary solidarity contribution targeting the fossil fuel sector, aligning with Council Regulation (EU) 2022/1854.
The measure is targeted at companies that generate a minimum of 75% of their taxable turnover in 2023 from economic activities such as raw material extraction, mining, crude oil refining, or coke product manufacturing. Moreover, a rate of 33% will be applied, and the temporary solidarity contribution will be applicable only to the portion of taxable income that surpasses 20% of the average taxable profit from the previous four income years commencing on or after 1 January 2018.