This guide to Netherlands oil and gas taxation provides an overview of the relevant tax rules that a typical investor in the oil and gas industry would take into account when considering to invest in or via the Netherlands.
The Netherlands have significant oil and gas resources onshore and offshore compared to the relative modest size of the country. Although the domestic exploration and production activities have been more or less stable, the Netherlands continues to attract investors in the industry. This is largely attributed to the Netherlands’ attractive tax regime for cross-border investments, well developed infrastructure and stability politically and economically throughout the country.
Part I covers the most relevant generally applicable rules and regulations for the Netherlands, starting with CIT (1.1). a brief outline of other relevant taxes will be summarized from 1.2 onwards. These rules are especially relevant when international investment projects are positioned around business activity in the Netherlands.
Specifically for upstream activities, the Mining act of 2003 provides for a well-developed tax regime, akin to CIT. This is largely due to the State profit share (or “SPS”) levied on upstream business profits. In addition, surface rentals and royalties may be levied based on this Mining act. These special levies including SPS are explained in Part II.
Part III provides a number of basic tax planning opportunities involving Dutch and non-Dutch oil and gas investments. This publication aims to provide general information only, and it cannot, therefore, be relied upon as sufficient advice for actual investment decisions. It has been last updated in June 2013.