A new tax called “solidarity contribution” was published in the Official Gazette. Basically, excess profits of producers of crude oil, gas and oil refineries will be taxed at a rate of 60%.

The tax base is an amount that is more than 20% higher than the average profit for the last four years.

The deadline for submission of the declaration and payment is by June 25 of the following year inclusive or by the 25th of the sixth month inclusive after the end of the changed financial year.

It is desirable that at least 70% of the amount collected in this way should be directed to the financing of energy investments.

The joint contribution will have to be paid by payers of income tax and income tax of micro-enterprises operating in the above industries.

Corresponding CAEN codes:

0610 – “Extraction of crude oil”

0620 – “Extraction of natural gas”

0510 – “Oil extraction”,

1910 – “Production of coking products”

1920- “Production of products obtained by refining oil.”

Finance recently claimed that the measure is general and coordinated at the level of the European Union and “allows, in a spirit of solidarity, to generate additional revenue for national authorities to provide financial support to households and businesses severely affected by the increase in energy prices.”

What will the solidarity contribution funds be used for?

Proceeds from the solidarity contribution are used for any of the following purposes:

• financial support measures for final energy consumers, especially vulnerable households, for purposeful mitigation of the consequences of high energy prices;

• financial support measures to help reduce energy consumption, for example through auctions or trading systems aimed at reducing demand, reducing the cost of buying energy by end-users of energy for certain consumption volumes, promoting investment of end-users of energy in renewable energy sources, in structural investments in energy efficiency or other decarbonization technologies;

• financial support measures to support enterprises in large energy-consuming industries, provided that they depend on investments in energy from renewable sources, in energy efficiency or in other decarbonization technologies;

• financial support measures for the development of energy autonomy, in particular investments in accordance with the REPowerEU objectives set out in the REPowerEU plan and in REPowerEU: joint European actions, such as projects with a cross-border dimension;

• for joint financing of measures aimed at reducing the negative consequences of the energy crisis, including supporting employment protection, reskilling and upskilling of the workforce or promoting investments in energy efficiency and energy from renewable sources, including cross-border projects, as well as in the Union Financing Mechanism for energy from renewable sources.

Photo source: Dreamstime.com