Denmark: Cultural Contributions Act including levy on audiovisual media service providers entered into force (Bill No. L 70)

On 1 January 2024, the Cultural Contributions Act entered into force. The Act introduces a cultural levy on on-demand audiovisual media service providers. The levy applies to providers established in Denmark or another European Union member state that provide services to a Danish audience, excluding those with annual turnover below DKK 15 million or a small Danish subscriber base. It imposes a 2% basic rate on Danish revenues, with a 3% surcharge if less than 5% of Danish revenues are invested in Danish content. The levy applies to subscription video-on-demand, transactional video-on-demand, and similar models but excludes audio-only services, sports and news channels, and certain distributors without editorial control. Services are deemed to be applicable to Denmark if they use Danish-language content, advertising, or commercial strategies directed at Danish consumers. The first levy payment is due in 2025 based on 2024 turnover.