Denmark introduces new air passenger tax

A new act on passenger tax on flights will come into effect in Denmark on 1 January 2025. Continue reading to find out more about the scope of the new passenger tax and the airlines' responsibilities.

Scope of the passenger tax

The passenger tax resembles those already introduced in countries like Sweden, Norway, and Germany. The tax will vary depending on the flight distance, and the rates will gradually increase until 2030. The tax is payable for all passengers onboard a commercial flight departing from a Danish airport. However, some passengers, such as infants and transit passengers, are not subject to the tax.

Airlines are responsible for paying the tax

Although passengers will ultimately bear the tax cost, the airlines are responsible for paying and documenting the tax to the tax authorities. Airlines must keep records of all passengers on each flight, which must be available for documentation to the tax authorities.

The authorities recently published a guide that explains in depth how to calculate the tax and which passengers are not covered by it. We have gathered the key points of the guide here.

IUNO’s opinion

This new act is part of the ongoing green transition that has gained increased attention worldwide in recent years. The tax is designed to, amongst other things, fund eco-friendly initiatives at airports and nearby areas, which we see as a good initiative. However, implementing the tax creates administrative challenges for airlines.

IUNO recommends that airlines familiarise themselves with their new responsibilities by the end of this year to avoid fines for incorrectly reporting or paying the tax.

At IUNO, we’re ready to assist airlines with the administrative tasks of reporting passenger taxes. We already have extensive experience in this area, supporting several international airlines through our offices in Norway and Sweden.

[Act on Passenger Tax on Flights of June 11, 2024]