Financial conditions of the Dutch Mining Law. How easy can it be?

In this article the financial conditions as they apply under the Mining Act as from 2003 are summarised. From a public finance point of view the financial consequences of this legislation in comparison to the previous legislation would be neutral as the reduced income would be balanced by increasing activities in the Netherlands and on the Netherlands part of the Continental Shelf. Royalty is abolished for offshore activities, and state participation no longer exclusively applies to production but can be requested during the exploration stages as well. The basis for profit share levy is much more linked to the corporate income tax result on a 'ring fenced' basis. Although an abolishment of profit share would have been a welcome improvement of the Mining climate, the Mining Act 2003 still is in many ways an improvement in comparison to the diversified previous systems. For the industry it is important that, also under the Mining Act the stability of the financial regime remains a cornerstone of Dutch financial politics