Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/31/2012

The Netherlands - Increased use of energy investment tax deduction 

July 31:   There was a 45% increase in claims relating to an energy investment tax deduction in the Netherlands for 2011 (compared to claims filed in 2010).

Summary

The energy investment deduction (energie-investeringsaftrek—EIA) is a tax measure designed to stimulate investment in energy efficient measures and sustainable energy.


The EIA allows for an additional deduction of 41.5% of the invested amount. The net corporate income tax benefit with a 25% rate is therefore approximately 10% of the invested amount.


In 2012, the maximum invested amount for which the EIA can be claimed is €118 million per business or joint venture.


According to the Dutch government’s 2011 annual report on the energy investment deduction (energie-investeringsaftrek—EIA), businesses invested more in energy efficient measures and sustainable energy in 2011 than they did in 2010.


  • The total EIA claimed were almost €1.5 million—representing an increase of 45%.
  • According to the annual report, in 2011 the total tax credit under the EIA totalled €116 million.

Read a July 2012 report prepared by the KPMG member firm in the Netherlands: Increased use of energy investment deduction




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