Climate change tax reforms and incentives in Netherlands

1. Has your country ratified the Paris Agreement? 

Yes

2. Has your country introduced environmental taxes?

2.1 Energy taxes

Energytax (Energiebelasting): Tax on electricity and gas use. Levy is placed on the consumer level (to reduce CO2 emissions and facilitate energy conservation).

Tax on tap water (Leidingwaterbelasting): Tax on the supply of tap water. Levy is placed on the supply of the tap water. The amount due is calculated on the used amount of water (to facilitate water conservation).

Tax on waste products (Afvalstoffenbelasting): Tax on the dumping and incineration of waste. Levy is placed on companies with a waste incineration plant or a waste disposal site. The amount due is calculated on the dumped and incinerated waste. (To reduce the total amount of waste products and prevent or facilitate reusage of waste products.)

Coaltax (Kolenbelasting): Tax on coal consumption. Levy is placed on companies that import, transport or consume coal. The amount due depends on the coal used (calculated per 1,000 kilograms of coal used). (To reduce pollution and energy consumption.)

2.2 Transport Taxes

Motor vehicle tax (Motorrijtuigenbelasting): Quarterly tax on vehicles. The amount due depends on several factors, such as the type of vehicle, weight of the vehicle and type of fuel. This tax is not owed on fully electric cars until 2025 (100% deduction rate). From 2025, this tax will rise in stages until 100% of the tax is owed (rising to a 0% deduction rate). In addition to the motor vehicle tax, a particulates surcharge is levied on cars (both private and company cars) that emit too many particulates (conditions have been drawn for this). (To reduce CO2 emissions.)

Additional tax liability (Bijtelling): Tax on the private use of a company car, levied when the company car is used for private purposes for more than 500 km per year. The amount due depends on the listed value of the vehicle. The additional tax liability for electric company cars will rise in stages (rising to a 22% rate on the list price). In the case of a company bike, the additional tax liability for company bikes will be 7%. In this case, the employer pays for the bike as well as the costs of maintenance and repairs. (Initially a tax on wages in kind, since the tax is levied on company cars used privately. However, now also used as a stimulation measure for the purchase and use of electric vehicles.)

Purchase tax (BPM): Purchase tax on new or imported vehicles. The amount due depends on the CO2 emission of the vehicle. No purchase tax is owed on electric cars until 2025. (To reduce CO2 emissions.)

2.3 Pollution taxes

N/A

2.4 Resources taxes

N/A

3. Has your country introduced a carbon tax?

N/A

4. Does your country offer sustainability incentives (tax credits, subsidies or other business incentives) to encourage taxpayers to engage in behaviours and develop technologies that can impact positively the environment? 

Yes, there are several incentives available. 

  • Energy-saving investment credit – energie-investeringsaftrek (EIA
  • Environmental investment credit – milieu-investeringsaftrek (MIA
  • Arbitrary depreciation of environmental investments – willekeurige afschrijving milieu-investeringen (VAMIL)  
  • Renewable energy production incentive – stimulering duurzame energieproductie (SDE+
  • Sustainable energy investment grant - Investeringssubsidie duurzame energie (ISDE)
  • Demonstration energy and climate innovation incentive – subsidie demonstratie energie- en klimaatinnovatie (DEI+)
  • Incentive for energy saving in an owner-occupied house – subsidie energiebesparing eigen huis (SEEH)
  • Landlord levy sustainability credit scheme – RVV verduurzaming
  • Green Funds Scheme – regeling groenprojecten
  • Energy conservation loans – energiebespaarlening
  • Subsidy scheme natural gas-free housing – subsidieregeling aardgasvrije huurwoningen (SAH)
  • Reduced VAT rate
  • Excise duty on fuel

Furthermore, there are different regional and local incentives in place to encourage changes with regard to the environment. 

5. Has your country recently announced tax reforms connected to climate change? 

Starting at the beginning of 2021, the Dutch government wants to introduce a CO2 tax.

Starting at the beginning of 2021, the Dutch government also wants to introduce a flight tax (on both passenger flights and cargo flights). 

In the years to come, several incentives will be restarted due to their success in the past (e.g. now there is no budget left to assign, but the expectation is that in the future, there will be new possibilities regarding the budget). 

6. Other comments

N/A

Picture of Herman Boersen
Herman Boersen
Partner
Amsterdam