Proposal for eight percent tax on fish farming companies in Denmark

A proposal to introduce an additional tax on fish farming companies has been sent for public consultation.

The proposed tax is eight percent and will contribute to the national treasury.

On March 26, the governmental coalition and the Union Party reached an agreement on a revised taxation framework for the fishing industry. They agreed to establish a dual taxation system, consisting of a service charge and an additional tax on the profits of fish farming enterprises.

The plan suggests that fish farming businesses will pay an additional tax of eight percent on the taxable income derived from their operations, which ranges from smolt production to sea farming and service provision.

The industry’s profitability will determine how much revenue the additional tax generates. For instance, if the profit reaches one billion Danish crowns, the additional tax would amount to 80 million crowns annually.

The Ministry of Finance has indicated that the service charge is expected to decrease starting in 2025. However, the additional tax, which will be imposed for the tax year 2025, will be paid in the summer of 2026.

As a result, it is anticipated that the national treasury will see lower revenue in 2025.

The law is set to come into effect on January 1, 2025.