Country Report

Denmark upstream fiscal summary

Get this report


You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.

- FAQ's about online orders
- Find out more about subscriptions

11 October 2018

Denmark upstream fiscal summary

Report summary

Danish licences operate under a concession fiscal regime. The last licensing round took place in 2014. The fiscal terms are not biddable or negotiable. The current fiscal regime comprises corporate income tax (25%) and an additional profits tax, known as the hydrocarbon tax (52%). Corporate income tax is deductible from the hydrocarbon tax so the effective tax rate is 64%. From 2005, the Danish state holds a 20% equity stake in all new licences via Nordsoefonden. In 2017, the parliament approved a number of hydrocarbon tax incentives mainly to help the major Tyra gas hub redevelopment. The incentives include a higher capital uplift and an accelerated depreciation for capital costs incurred between 2017 and 2025 (inclusive).

Table of contents

  • Executive summary
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
      • Corporate income tax
      • Hydrocarbon tax (additional petroleum tax)
      • Fiscal treatment of decommissioning costs
      • Product pricing
      • Summary of modelled terms
    • Recent history of fiscal changes
    • Stability provisions
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
    • Progressivity
    • Fiscal deterrence

Tables and charts

This report includes 18 images and tables including:

  • Revenue flowchart: Denmark Concession
  • Timeline
  • Timeline details
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate and minimum state share
  • Maximum government share and maximum state share
  • State share versus Pre-Share IRR - oil
  • State share versus Pre-Share IRR - gas
  • Investor IRR versus Pre-Share IRR - oil
  • Investor IRR versus Pre-Share IRR - gas
  • Bonuses, rentals and fees
  • Indirect Taxes
  • Depreciation schedule
  • Surtax
  • Denmark Concession

What's included

This report contains:

  • Document

    Denmark upstream fiscal summary

    PDF 819.51 KB

Trusted by leading organisations