World Tax Service asseses additional burden on businesses
Quick Test on Energy and Electricity Tax
Düsseldorf, 15 September 2010 – The German Cabinet has already approved of the legislation accompanying the budget and once it has also been passed by the Federal Parliament and the Federal Council, businesses will be faced with an increased energy and electricity tax burden. This was underlined by WTS World Tax Service in Düsseldorf. To give companies affected by this change the opportunity to take the necessary steps before 1 January 2011, WTS offers a quick test which does not only give businesses certainty for planning but also the chance to benefit from so far unutilized tax optimisation.
As of 2011 the reduced electricity tax-rate will cease to exist. It is intended to increase electricity tax to 16.40 euros per megawatt hour.
Companies in the manufacturing industry shall receive a later relief of 4.10 euros per megawatt hour on internally used electricity exceeding a basic amount of 500 euros. But also the so-called marginal compensation is to be reduced markedly. The respective basic amount for electricity tax will then be at 2,500 euros, for energy tax at 2,000 euros. The relief, which is granted as soon as these basic amounts are exceeded, is to be reduced from 95 to 73 per cent as of 2011. Since it is planned to abolish the so-called permit procedure (Erlaubnisscheinverfahren), all companies in the manufacturing industry will have to file an application for tax relief in order to benefit from the reduced electricity tax burden.
Heat generators will no longer be entitled to tax relief unless they operate public district heating networks or the heat generated is used in the manufacturing or in the agricultural and forestry industry. Also those using electricity to generate secondary energy will have to reckon without any tax relief unless the secondary energy is used in the manufacturing or in the agricultural and forestry industry.
The second and third reading of the legislation accompanying the budget in the Federal Parliament has been scheduled for 29 October, the final consultation in the Federal Council will be held on 26 November. The same day the 1st German Energy Tax Convention of the Federation of German Industry (BDI) will take place in co-operation with WTS. If you would like to determine the impact of the proposed legislation on your business now, you are invited to use the quick test provided by the WTS Energy and Electricity Tax team.
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