The Netherlands enacted the Temporary Inframarginal Electricity Tax Act of 17 July 2024, introducing a temporary tax on the surplus income of electricity producers.
The Act was published in the Official Gazette on 24 July 2024.
On the same day, regulations for implementing the temporary tax were also published. This tax aligns with Council Regulation (EU) 2022/1854 and is imposed at the rate of 90% on income generated by electricity producers that exceed specified exempt amounts per MWh.
The exempt amount is EUR 130 per MWh, although higher exempt amounts of EUR 240 per MWh and EUR 285 per MWh apply for electricity produced from solid and gaseous biomass fuels, respectively.
The feasibility and regulatory burden of the Temporary Act on Inframarginal Electricity Tax have already been assessed by several organisations, including the Advisory Board for Regulatory Burden Assessment (ATR). In the context of this scheme, a number of tools are made available to taxpayers. The most important of these is the provision of the format for the market income report.
The Temporary Inframarginal Electricity Tax Act will apply retroactively from 1 December 2022 to 30 June 2023. The payments and returns are due by 1 April 2025.
