Windfall tax proposal approved by the Chamber of Deputies
On Friday 4 November 2022, after several hours of debates, the Chamber of Deputies approved the Windfall tax proposal in its third reading. The second reading resulted in a number of amendments, none of which were adopted, though (apart from one clarifying proposal). The proposal will now go to the Senate.
The tax on extraordinary profits of selected companies should therefore apply for the years 2023-2025 at a rate of 60% in addition to the current 19% corporate income tax rate. So basically, what we have already informed you about in the past, here, applies.
Given the fact that the draft was put together relatively quickly and did not incorporate a number of comments from professional chambers, including the Chamber of Tax Consultants, it is possible to expect interpretation problems and an impact of the extraordinary tax on businesses (or income) that were not originally intended by the legislator to be impacted. If you are unsure as to whether or not the Windfall tax will apply to you, please contact us. We will be happy to check the specific case of your company.
Author: Jiří Jakoubek, Tomáš Brabenec, Jaroslav Foltýn