The Swedish Tax Agency has declared an announcement that tax will be imposed on excessive profits of electricity producers from 1st March 2023 to 1st June 2023 for a limited time period. The recently implemented measure aligns with the guidelines outlined in the European Union’s Regulation 2022/1854 concerning an emergency intervention for managing high energy prices.it has been established that electricity producers with income exceeding SEK 1,957 per megawatt-hour will be subject to a tax rate of 90%. The tax on excess income must be paid by electricity producers who generate power from various sources such as wind energy, thermal solar energy, solar cells, geothermal energy, waste, nuclear energy, lignite (brown coal), crude petroleum products, peat, solid or gaseous biomass fuels (excluding biomethane), and hydropower without reservoirs. If their installed capacity exceeds 1 megawatt or the equivalent for solar energy, producers of electricity must register. It is mandatory to submit declarations every month between 1 March and 30 June 2023 with a deadline of the 26th of the following month. The declaration must be submitted for every month, even there is no excess income generated from electricity.
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