Tax regulation mechanisms (Tax exemptions for renewable energy machinery and equipment)

Updated: 05.02.2019

Author: Tim Sternkopf

The regulatory framework stipulates the exemption from the custom duties of machineries and equipment used for construction of new power capacities using renewable energy sources (Power Capacity Construction Law, Reimbursement Decision). In addition, excise tax exemptions for the fuel used by electricity producers are in place (Art. 42 Decision on Excise Tax Law). 

Eligible technologies

All technologies are eligible


All natural or legal entities and foreign nationals who install electricity production plants


Process flow

Import Duties exemptions. Investors in power production based on renewable energy sources, after obtaining the relevant building permit, must submit to the ministry responsible for energy, 6 months prior to importation, a complete list of specified machinery and equipment, which will be imported for the planned renewable energy power plant. The Ministry verifies and adopts the list. The Directorate General of Customs based on the list approved by the Ministry implements the exemption from import duties. (Art. 1-6, Reimbursement Decision).

Excise Tax exemptions. Natural or legal entities who use fuels for electricity generation (including from renewable energy sources) for selling or for own consumption can apply for excise tax exemption for the used fuel. The application must be submitted to the customs office by the 10th of the following month for the fuel used for electricity production in the previous month (Art 42 & 3 Decision on Excise Tax Law).

Competent authority

Ministry of Finance, Directorate General of Customs

Distribution of costs


The costs for the tax exemptions are borne by the state