Extra profits Energy Companies Tax Calculation Instructions 2023

Which companies in the Energy sector must pay the extraordinary contribution on extra profits 2023 envisaged by the Budget Law (paragraphs 115 and following of Law 197/2022), how it is calculated, when and how it is paid: the instructions are contained in the Circular of the Revenue 4/2023 The contribution is equal to 50% of the share of turnover extra 2022 which exceeds by at least 10% that of the four previous tax periods but cannot exceed 25% of the net assets in 2021.

The tax on extra profits 2023 must be paid by Energy companies working in the territory of the State (including foreign subjects with a permanent establishment in Italy), which in the 2022 tax period had revenues equal to at least 75% of the annual turnover from the following activities: If it does not correspond to the calendar year , the tax period is the one in progress on 1 January 2023 By way of example and not exhaustively, the ATECO codes are as follows: The following types are excluded: Extra-profit tax 2023: how is the levy calculated? 20 January 2023 The law provides that the tax is equal to 50% «of the share of total income determined for corporate income tax purposes relating to the tax period prior to the one in progress on 1 January 2023, which exceeds by at least 10 per cent the average of the total income determined pursuant to corporate income tax achieved in the four tax periods prior to the one in progress on 1 January 2022".

In calculating the tax base, any reductions due to the carry forward of losses referring to previous years are not considered, and the possible ACE (aid for economic growth) deduction To determine the taxable base, reference is made to the amount indicated in line RF63 of the Income Model for Joint-Stock Companies, Commercial Entities and equivalents (SC Income).

The practice document details specific cases (eg consolidated financial statements, tax transparency option) Here are the steps for a company with a calendar year coinciding with the fiscal year, summarized in the following calculation example: If the average income is negative (that is, the company has been making a loss on average), a conventional value equal to zero is assumed.

Therefore, the taxable base of the solidarity contribution coincides with the income (gross of previous losses and ACE deduction) relating to the tax year preceding the one in progress on 1 January 2023 If the company started operations after the first observation period envisaged by the law (January 1, 2018 for subjects whose financial year coincides with the calendar year), the average income value (or loss) takes into account the income relating to the year beginning (compared to each year) and that of the subsequent tax years.

Example: company that started Business on January 1, 2020: the arithmetic mean is calculated considering only the income (or loss) for the 2020 and 2021 tax periods However, if the Business started in 2022, no the tax on extra profits is due, due to the lack of historical data on which to calculate it.

On the basis of paragraph 116 of the maneuver, the «extraordinary contribution is determined by applying a rate equal to 50%» of the taxable base, as determined above, but «in any case, may not exceed a quota equal to 25% of the value of the shareholders' equity at the closing date of the financial year prior to the one in progress on 1 January 2022" Therefore, for companies with operations corresponding to the calendar year, the tax on extra profits will be equal to the lower value between the theoretical amount of the contribution, as determined above, and 25% of the 2021 net assets.

In the example above, the basic proposal taxable amount of 400 thousand euros, the tax will be equal to 200 thousand euros or, if lower, 25% of the 2021 shareholders' equity For permanent establishments of companies resident abroad, the shareholders' equity is identified with the fiscally congruous endowment fund belonging to the permanent establishment itself.

Payment is expected "within the sixth month following the end of the financial year prior to the one in progress on 1 January 2023" Therefore, if the tax period coincides with the calendar year, the contribution must be paid by 30 June 2023.

If they approve the financial statements more than four months after the end of the financial year, they make the payment within the month following the one in which the financial statements are approved: given that the longest term for the approval of the financial statements is 180 days, the deadline for payment is 31 July 2023 Here are the cases: Finally, subjects with a Business that does not coincide with the calendar year must make the payment by 30 June 2023.

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