DENMARK: GENERAL METADATA
Data documentation
General notes
Denmark’s fiscal year coincides with the calendar year.
Producer Support Estimate
Income derived from oil and natural-gas production is subject to various taxes and fees: the regular corporate income tax; the hydrocarbon tax (a specific tax on income derived from oil and gas production); royalties and compensatory payments; and profit sharing. Payments under the corporate tax are deductible from the hydrocarbon tax base. In addition, the oil pipeline tariff and compensatory fee can be offset against the hydrocarbon tax, but not against the corporate tax base. As of 2014, the corporate income tax amounts to 24.5%. However, in 2013 the Danish parliament passed two bills that will reduce the corporate income tax rate to 22% by 2016. Until January 2014, the hydrocarbon tax regime differentiated between "old" licences granted before January 2004 and "new" licences granted since 1 January 2004. For old licences, hydrocarbon income was subject to a 70% tax rate, but licensees were allowed to offset 25% of their capital expenditure (CAPEX) against their hydrocarbon tax bill over a period of ten years. For new licences, the hydrocarbon income tax was set at 52% and the allowance was granted for 5% of CAPEX over six years. From January 2014 on, this differentiation is now abolished and old licences are treated under the same tax terms as new ones.
OECD Companion to the Inventory of Support Measures for Fossil Fuels 2021
Nov-23
Data for 2022 are preliminary and may contain OECD-generated estimates.
Annual
Indicator
PSE: Producer Support Estimate
GSSE: General Services Support Estimate
CSE: Consumer Support Estimate
Stage
EXTRACT: Extraction or mining stage
TRANS: Transportation of fossil fuels (e.g., through pipelines)
REFIN: Refining or processing stage
GENER: Use of fossil fuels in ectricity generation
INDUS: Use of fossil fuels in the industrial sector
END: Other end uses of fossil fuels
Statutory or Formal Incidence
consumption: Direct consumption
returns: Output Returns
income: Enterprise Income
inputs: Cost of Intermediate Inputs
labour: Labour
land: Land and natural resources
capital: Capital
knowledge: Knowledge
1) Fiscal cost of support measures for fossil fuels are based on information reported by countries through official documentation (e.g. budget reports). Support measures for which such information is not available are excluded from the aggregate amount reported in this table. In addition, support measures in certain countries may not have been exhaustively identified.
2) Tax expenditures are estimates of revenue that is foregone due to a particular feature of the tax system that reduces or postpones tax payments (relative to a jurisdiction’s benchmark tax system) to the benefit of fossil fuels’ producers or users. Hence, (i) tax expenditures estimates can increase either because of greater concessions (relative to the benchmark tax system) or because of an increase in the benchmark itself; (ii) cross-country comparisons of tax expenditures can be misleading due to country-specific benchmark tax systems.
3) Support measures for fossil fuels are included in the Inventory without reference to their economic or environmental effects. No judgment is therefore made as to whether such measures are inefficient or ought to be reformed.
DENMARK: GENERAL METADATA
Data documentation
General notes
Denmark’s fiscal year coincides with the calendar year.
Producer Support Estimate
Income derived from oil and natural-gas production is subject to various taxes and fees: the regular corporate income tax; the hydrocarbon tax (a specific tax on income derived from oil and gas production); royalties and compensatory payments; and profit sharing. Payments under the corporate tax are deductible from the hydrocarbon tax base. In addition, the oil pipeline tariff and compensatory fee can be offset against the hydrocarbon tax, but not against the corporate tax base. As of 2014, the corporate income tax amounts to 24.5%. However, in 2013 the Danish parliament passed two bills that will reduce the corporate income tax rate to 22% by 2016. Until January 2014, the hydrocarbon tax regime differentiated between "old" licences granted before January 2004 and "new" licences granted since 1 January 2004. For old licences, hydrocarbon income was subject to a 70% tax rate, but licensees were allowed to offset 25% of their capital expenditure (CAPEX) against their hydrocarbon tax bill over a period of ten years. For new licences, the hydrocarbon income tax was set at 52% and the allowance was granted for 5% of CAPEX over six years. From January 2014 on, this differentiation is now abolished and old licences are treated under the same tax terms as new ones.
OECD Companion to the Inventory of Support Measures for Fossil Fuels 2021
Annual
Nov-23
Data for 2022 are preliminary and may contain OECD-generated estimates.
Indicator
PSE: Producer Support Estimate
GSSE: General Services Support Estimate
CSE: Consumer Support Estimate
Stage
EXTRACT: Extraction or mining stage
TRANS: Transportation of fossil fuels (e.g., through pipelines)
REFIN: Refining or processing stage
GENER: Use of fossil fuels in ectricity generation
INDUS: Use of fossil fuels in the industrial sector
END: Other end uses of fossil fuels
Statutory or Formal Incidence
consumption: Direct consumption
returns: Output Returns
income: Enterprise Income
inputs: Cost of Intermediate Inputs
labour: Labour
land: Land and natural resources
capital: Capital
knowledge: Knowledge
1) Fiscal cost of support measures for fossil fuels are based on information reported by countries through official documentation (e.g. budget reports). Support measures for which such information is not available are excluded from the aggregate amount reported in this table. In addition, support measures in certain countries may not have been exhaustively identified.
2) Tax expenditures are estimates of revenue that is foregone due to a particular feature of the tax system that reduces or postpones tax payments (relative to a jurisdiction’s benchmark tax system) to the benefit of fossil fuels’ producers or users. Hence, (i) tax expenditures estimates can increase either because of greater concessions (relative to the benchmark tax system) or because of an increase in the benchmark itself; (ii) cross-country comparisons of tax expenditures can be misleading due to country-specific benchmark tax systems.
3) Support measures for fossil fuels are included in the Inventory without reference to their economic or environmental effects. No judgment is therefore made as to whether such measures are inefficient or ought to be reformed.