The levy is set to be 40% of excess profits on top of regular taxes
The Austrian government plans to introduce a new windfall tax on energy companies, Vice Chancellor Werner Kogler and Finance Minister Magnus Brunner announced at a press conference on Friday.
The levy will amount to 40% of excess profit for oil and gas companies, according to the announcement.
As Kogler explained, the government will take a company’s average profit between 2018 and 2021 as the basis for the tax. If current profit is more than 20% above this average, 40% will be skimmed as a windfall tax. However, since the corporate tax on this profit will continue to be due, companies will end up giving up a total of 65% of these profits, Kogler added.
He noted also that if a company can prove that it is investing in renewable energy, the levy drops from 40% to 33%.
In addition to the new windfall tax on oil and gas companies, power providers will also see excess profits taxed. Utility companies will be subject a tax rate of 90% on any profits exceeding €180 per megawatt-hour, Kogler explained.
Both levies will be in place until the end of 2023. The tax on oil and gas comp…