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Deputies pass windfall tax

The chamber of deputies today have approved the introduction of a tax on windfall profits for 2023 to 2025, in the form of a bill submitted by the Minister of Finance. All amending proposals were withdrawn or rejected.

The deputies accepted only a legislatively technical amending proposal clarifying that income from activities qualifying for the windfall tax shall be determined as the annual total net turnover from the qualifying activities under the Accounting Act.

According to the reasoning given during the discussion in the chamber, this amending proposal was adopted primarily to clarify and confirm that only income from the activities qualifying for the windfall tax, and not all income of the taxpayer, is relevant for meeting the CZK 2 billion limit. The total relevant income is based on the annual total net turnover from these qualifying activities only. The bill will now be considered by the senate.

The parameters of the approved tax are summarised here.