Denmark to Stop Taxing Unrealized Gains From Long-Term Hedges

Denmark will stop taxing the unrealized gains from long-term price hedging contracts in an effort to support the country’s green energy transition.

The Danish Ministry of Taxation announced Wednesday that political parties across government signed an agreement to change the law to only tax realized income from the contracts.

The Ministry will submit a bill for consultation as soon as possible, it said.

Currently, companies that make use of certain long-term hedging contracts have to pay taxes on unrealized gains that occur when the value of a contract increases, even if the company hasn’t received any payments from it. ...