We keep you informed of developments regarding the possible introduction of a special tax on "windfall" profits - the so-called windfall tax.
On Friday, 21 October 2022, a proposed amendment aimed at introducing the windfall tax was officially published.
Below is a simplified summary of our current understanding of its main parameters
Period of application/prepayment
Companies in scope
We will continue to monitor this area. If you have any questions, please contact the authors of this article or the EY tax team with whom you regularly work.
 More precisely, these should be activities listed in the NACE classification under the codes:
o 05.10 - Mining and preparation of hard coal,
o 06 - Extraction of crude petroleum and natural gas,
o 19.1 - Manufacture of coke oven products,
o 19.2 - Manufacture of refined petroleum products,
o 35.1 - Production, transmission and distribution of electricity, except combined production of electricity and heat with a ratio of electricity produced to useful heat supplied of less than 4.4,
o 35.2 - Production of gas; distribution of gaseous fuels through networks,
o 46.71.2 - Wholesale of liquid fuels and related products,
o 46.71.3 - Wholesale of gaseous fuels and related products,
o 49.50.1 - Oil transportation by pipeline,
o 49.50.2 - Gas transportation by pipeline,
o 64 - Financial intermediation, except insurance and pension funding, except for the activities listed in the NACE classification under code 64.11 - Central banking, if the taxpayer is a bank.
 I.e. for a Czech tax resident, apart from income from sources abroad that can be taxed abroad according to an international treaty, or for a non-tax resident, income from sources in the Czech Republic apart from income that cannot be taxed in the Czech Republic according to an international treaty. The bill also contains an exception from inclusion in the relevant income for selected intra-group supplies of electricity or gas.
 Before the application of reducing/deductible items and without the inclusion of income from foreign sources that may be taxed abroad under an international treaty (and related expenses). Similarly, this applies to historical tax bases.
 Under certain conditions, it will be possible to transfer historical average basis amounts between companies in the group.