On 22 March 2023, the government of Denmark has published a proposed bill introducing a solidarity contribution that purposes to tax on excess profits of companies in the crude oil, natural gas, coal and refinery sectors in line with the Council Regulation (EU) 2022/1854 of 6 October 2022. The purpose of the bill is to supplement and implement the provisions on a mandatory temporary solidarity contribution from companies in the crude oil, natural gas, coal and refinery sectors, which appear in Articles 14-16 of Council Regulation (EU) No. 2022/1854 of 6. October 2022 on an emergency intervention to address high energy prices (the emergency intervention regulation). It is proposed that the temporary solidarity contribution be imposed in the income year 2023.

It is further proposed that the temporary solidarity contribution must be paid by companies with activities within the crude oil, natural gas, coal and refinery sectors, and that, as stipulated in the emergency intervention regulation, it must be a condition, that at least 75 per cent of the taxable turnover in the income year 2023 derives from economic activities within the extraction of raw materials, mining, refining of crude oil or the manufacture of coke oven products. It is proposed that the temporary solidarity contribution must be matched with the minimum rate of 33 percent set in the emergency intervention regulation. According to the proposal, the basis of calculation must be the company’s or permanent establishment’s taxable income calculated before any joint taxation in the income year 2023.

The temporary solidarity contribution will only have to be met by the part of the basis of calculation that exceeds the company’s or permanent establishment’s average taxable profit before joint taxation in the 4 first income year started on 1 January 2018 or later with an addition of 20 per cent. It is proposed that the law enters into force the day after the announcement in the official Gazette.