Taxation of Wind Power 2023

The KPMG survey Taxation of Windpower provides an overview of the taxation of wind power in 40 leading countries which represent key wind power producing countries. This is the third edition of the wind power country overview with 11 new coutries included in the survey.  In addition, we have included a few countries that have potential to become large future producers of wind power, e.g. through investment in offshore wind.

Wind power production is a fast-growing business. In a time when countries all over the world seek to reduce emissions from fossil energy production, wind power production is expected to continue to grow in the future. 

In light of the current increased power and energy prices, several countries have recently introduced windfall taxes also on renewable power production. Compensation by way of local taxes is meant to secure support from local municipalities affected by construction and operation of wind farms. This is commonly obtained through levy of property tax.

• Wind power companies in Serbia are taxed in the same way as other companies. The CIT rate in Serbia is flat and amounts to 15%. 
• Supply of electricity is considered a supply of goods to which general VAT rate of 20% is applied. A tax debtor is a taxpayer which performs supply of electricity. However, tax debtor is recipient of electricity in case of supply performed by VAT payer to another VAT payer which purchased the electricity for further sale (reverse charge).
• In Serbia, tax on property is paid by the titleholder of the property rights (ownership, right of use, tenure, etc.). Property tax rate may not exceed 0.4%. In line with the Ministry of Finance opinion, wind turbines would be subject to property tax in Serbia. In this case, the whole turbine including basis, tower, rotor, blades etc. is subject to property tax.