Irish Windfall Profits Tax announced today.
The Government says has also decided to implement the “temporary solidarity contribution”, as set out in the Council Regulation, to companies which are active in fossil fuel production and refining for the years 2022 and 2023.
This “ temporary solidarity contribution” is based on the portion of a company’s taxable profits which are more than 20% higher than a baseline, it says
“ The baseline will be the average taxable profits for the company for the period 2018 to 2021. Losses from previous years will not be taken into account in the calculation of the taxable profits in temporary solidarity contribution or the baseline,”Ryan’s department says.
“Taxable profits which are more than 20% above the baseline will be subject to the temporary solidarity contribution at a rate of 75%,” it says.
“ This will lead to an effective rate of 0% for windfall gains of up to 20%, an effective rate of 50% for windfall gains of 60%* and an effective rate of 60% for windfall gains of 100% (i.e. where profits have doubled),”it says.
“Given the volatility of gas prices, the level of proceeds from the cap on market revenues and the temporary solidarity contribution cannot be estimated with any certainty,” it says.
“ Depending on the price level of natural gas, the proceeds could range from circa €300 million to €1.9 billion. However, the level is expected to be in the lower end of this range and could be even lower if gas prices reduce,” it adds.
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|464939||Re: Irish Windfall Profits Tax announced today.||coolreit||8||11/22/2022 2:50:15 PM|
|464941||Re: Irish Windfall Profits Tax announced today.||newtoboard||3||11/22/2022 3:03:03 PM|
|464962||Re: Irish Windfall Profits Tax announced today.||mdwitte||11||11/22/2022 4:15:25 PM|
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