Denmark: Tax incentives for electric vehicles and biofuels
Effective January 1, 2026
Parliament on December 16, 2025, passed Bill L 25 which, effective January 1, 2026 (1) expands the reimbursement scheme for electric vehicle (EV) charging; and (2) exempts pure biofuels from the carbon dioxide tax. The bill also reduces the volume-based packaging tax to DKK 0 for 2026 and 2027.
Parliament also adopted two laws that, effective January 1, 2026, (1) postpone the phasing-in of higher registration taxes for zero-emission vehicles by one year and revise tax brackets through 2036; and (2) introduce tax exemptions for zero-emission passenger cars used in commercial transport and expands provisions for energy used in CO₂ capture for geological storage.
For more information, contact a KPMG tax professional in Denmark:
Sebastian Houe | sebastian.houe@kpmg.com
Flemming Lind Johansen | flemming.lind.johansen@kpmg.com