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Danish Parliament Considering Draft Bill for Solidarity Contribution on Fossil Fuel Sector — Orbitax Tax News & Alerts

The Danish parliament is considering draft bill L 69, which provides for the introduction of a temporary solidarity contribution on the fossil fuel sector in line with Council Regulation (EU) 2022/1854. As previously reported, the solidarity contribution will apply to companies in the crude oil, natural gas, coal, and oil refining sectors that derive at least 75% of their taxable turnover in 2023 in the fields of extraction, mining, petroleum refining, or the production of coke oven products. The contribution will be levied at a rate of 33% on taxable profits in 2023 to the extent exceeding 120% of the average taxable profits in the four years 2018 to 2021. Draft bill L 69 has passed its first reading and is pending approval in its second and third readings.