Ørsted Gets Favorable Tax Opinion on Two UK Wind Farms

Ørsted has received a favorable final opinion in a long-running tax dispute between Denmark and the United Kingdom over taxation rights related to the Walney Extension and Hornsea 1 offshore wind farms.

An advisory commission established under the EU Arbitration Convention concluded that the projects have a genuine legal and economic purpose and should primarily be taxed in the country where they are located, the United Kingdom, over their operating lives as they generate electricity and revenue.

The opinion follows the legal principles for taxation of services applied by Ørsted and is consistent with the company's interpretation of international tax rules for the offshore wind industry.

The case dates to 2015, when Ørsted asked the Danish Tax Agency and UK tax authorities to clarify how taxation rights should be allocated between the two countries to avoid double taxation.

The authorities were unable to reach an agreement and the case was referred to an advisory commission in 2023.

The opinion will result in a minor increase in Ørsted's overall tax position in Denmark, along with accrued interest, but the adjustment is fully covered