This report by KPMG provides an overview of taxation across the renewable energy sector. In many countries, renewable energy production is subject to standard corporate income tax (CIT) rates, which range from 12.5% in Ireland to as high as 35% in Argentina and India. Generally, most countries impose CIT on renewable energy production within the 20% to 30% range. It’s important to note that applicable tax rates vary due to local regulations.
Several countries have introduced incentive schemes such as accelerated tax depreciation for wind power assets, leading to increased profitability for wind power producers. The main incentive behind such rules is to increase renewable energy production and to speed up the transition from fossil energy to green power production. Compensating local municipalities through local taxes is an effective strategy to gain their support for the construction and operation of renewable energy facilities. This is typically achieved by imposing property taxes.
Access the report here
