On November 24 2022, the
Senate approved a tax package that, among other things, introduces a so called
windfall tax based on the parameters of EU regulations. The bill will now go to
the president for his signature. The tax would apply from January 1, 2023, for three
years (i.e. 2023-2025) to exceptionally profitable companies in the energy
production and trading, banking, petroleum, and fossil fuel extraction and
processing sectors. The windfall tax will operate as a 60% tax surcharge on
companies' excess profits, determined as the difference between the tax base in
2023-2025 and the average of the tax bases over the last four years, plus 20%.
The Ministry of Finance expects revenue of about CZK 85bn in 2023. Another CZK 15bn
should be generated next year due to the EU price caps for electricity
producers.
Source: Daily
news | ČIA news
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