Filenews 16 October 2022 - by Eleftheria Paizanou
The tax regime applied by Italy, Spain and Greece, in relation to the taxation of windfall profits in the energy sector, will be put forward by AKEL when the proposals for a law proposing the imposition of a 90% tax on electricity and fuel super profits will be discussed in the competent parliamentary committee. According to a survey conducted by the Research and Studies Section of the Parliament, at the request of the Secretary General of AKEL Stefanos Stefanos, the three countries impose taxes either by law or through a decree on companies that have unexpectedly super profits in the energy sector.
Greece
According to the service's note, in Greece there is no specific legislation referring to windfall profits in the energy sector, however in the national climate law to address the energy crisis, an article is included by which these profits are considered the positive difference of the gross profit margin of the debtor between the month of examination and the same month of the previous year. In fact, in the legislation, the tax rate is defined as the one-off special contribution of 90% for these profits, which is imposed on the basis of the increase in the gross profit margin for the period from October 1, 2021 to June 30, 2022. Specifically, the contribution is calculated per month of examination by applying a rate of 90% on the positive difference of the gross profit margin of the obligated party between the month of examination and the same month of the previous year, weighted by the percentage of fixed price supply contracts and deductions to final consumers and refunds, pursuant to bilateral contracts for the purchase and sale of electricity.
Italy
In Italy, according to a 2022 decree, the "special levy against the increase in bills" to be paid by companies operating in the electricity, gas and petroleum products sector was introduced. The contribution will be calculated on the basis of the increase in profits recorded by the companies between 1 October 2021 and 30 April 2022, compared to the same period in the previous year (1 October 2020 - 30 April 2021). Also, the decree increased the tax rate from 10% to 25% and at the same time the payment of the tax will be made in two instalments, that is, 40% was given as an advance payment by June 30, while the rest will have to be paid by November 30 2022. The measure concerns only companies whose profits will be increased by more than €5 million. and by at least 10%. Tax revenues are expected to reach €10.49 billion.
Spain
In Spain, a draft relevant bill provides for the payment of an energy levy in 2023 and 2024. The contribution will be calculated per month, applying a rate of 1.2% to the annual net turnover of the previous year, during which the obligation to pay arises, as shown in the profit and loss accounts.
