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Belgium's Windfall Tax on Excess Income of Electricity Producers Energy Producers — Orbitax Tax News & Alerts

Belgium has introduced a temporary windfall tax on the excess income of electricity producers that is generally in line with Regulation (EU) 2022/1854 of 6 October 2022. The tax is levied at the rate of 100% on the income of electricity producers exceeding EUR 130 per MWh, although this is increased to EUR 180 per MWh when electricity is generated from solid and gaseous biomass fuels and the incineration of urban waste. The tax generally applies for all producers of electricity in Belgium, except producers with an installed capacity of up to 1 MW. The temporary windfall tax covers the period 1 August 2022 to 30 June 2023. Producers subject to the tax are required to submit a declaration to the Belgian Commission for Electricity and Gas Regulation by 30 April 2023 for the period 1 August to 31 December 2022, with a second declaration due by 7 September 2023 for the period 1 January to 30 June 2023. Based on the declarations submitted, a payment order for the tax will be issued. The windfall tax is a deductible expense for income tax purposes and cannot be passed on directly or indirectly to other companies or end users.