Changes in the rules concerning the extra profit taxes

The extra profit taxes (also known as windfall taxes) were originally envisaged – and, according to the text of the legislation, would have only applied – for the 2022 and 2023 tax years. However, according to recent government statements, “it is likely that they will be phased out faster in some and slower in other areas.” It is particularly true for these taxes, therefore, that the legislator is constantly changing the rules of the game as it goes along, with dozens of changes to the provisions since they came into force in July last year. Government Decree no. 62/2023 (II.28.), which entered into force on 1 March, again amended Government Decree no. 197/2022 (VI.4.) on extra profit taxes in several points. The amendments are summarised in this newsletter.