Countries around the world are increasingly implementing taxes on air travel to fund sustainable aviation and reduce the industry’s environmental impact. Denmark is the latest to follow this trend, introducing a new air passenger tax starting in 2025 to support the transition to sustainable aviation fuels (SAF).

Like Portugal’s carbon tax on air passengers, Denmark’s approach aims to curb the aviation sector’s climate footprint through targeted financial measures.

Tax Applicability

The tax applies to all passengers departing from Denmark on fixed-wing aircraft certified for more than 10 passenger seats or with a maximum permitted take-off weight of more than 5,700 kg (12,566 lbs).

It is applicable to passengers on both private non-revenue and charter (non-scheduled commercial) flights.

Tax Exemptions

Exemptions exist for:

• Military flights
• Government flights
• Ambulance flights
• Search and rescue flights
• Humanitarian flights
• Police flights
• Infants
• Staff of aircraft operators on business trips
• Transfer and transit passengers (conditions apply)

It’s best to confirm exemptions with your 3rd-party provider, as they may or may not apply in your particular case.

Tax Rates

The tax will be phased in from 2025, with rates increasing annually until 2030. The rates by 2030 will be:

Note: For a list of countries in each category, please visit the Danish Tax Agency’s website.

How the tax will impact your operations

The tax is based on the final destination of the journey. For example, if you’re flying an intra-European route, the tax will be 50 Danish kroner per passenger by 2030.

When calculating the fees due for a flight, it’s important to note the specific classification of your destination.

Registering for the tax

To ensure compliance, operators must complete their registration with the Danish Tax Agency (Skatteforvaltningen) by January 15, 2025, or at least 8 days before their first chargeable flight. Early registration is recommended to avoid last-minute issues, especially for operators who might schedule flights on short notice.

Key requirements include:

• Appointment of a fiscal representative, if the operator does not have a fixed establishment in Denmark.
• Timely registration to ensure smooth operations.

Paying the tax

The tax is calculated based on passenger departures for applicable flights. Payments must be made to the Danish Tax Agency by the 15th day of the month following the reporting period.

Potential Challenges

Failure to register or file correctly may result in penalties or operational restrictions in Denmark.

Conclusion

Denmark’s new Air Passenger Tax reflects a growing global trend toward sustainable aviation. While the tax introduces new compliance requirements for operators, early planning and registration can help avoid disruptions. By meeting the January 15, 2025, registration deadline and ensuring ongoing compliance with tax filings, operators can focus on smooth operations in Denmark.

With increasing environmental regulations across the aviation industry, staying proactive and informed is more important than ever.