On 8 June 2023, the Greek Public Revenue Authority (AADE) has recently issued Decision A. 1069, outlined the necessary procedures and return form for the temporary solidarity contribution imposed on fossil fuel companies. This move aligns with Council Regulation (EU) 2022/1854 and stems from Article 114 of Law No. 5007 of 2022.
The temporary solidarity contribution targets companies that generate a minimum of 75% of their gross income in the tax year 2022 from activities related to coal and lignite mining, crude oil and natural gas extraction, the production of coking products, and petroleum refining. A fixed rate of 33% applies to this contribution, with the amount calculated using the following formula: [Taxable profits of tax year 2022 – (120% x (1/4 x (taxable profits or losses of tax years 2018 + 2019 + 2020 + 2021)))] x 33%.
Companies are required to submit the solidarity contribution return, which is enclosed within the decision, by 30th June 2023, unless their tax year commences in 2022 but ends on a date other than 31st December. In such cases, the return is due by the last working day of the sixth month following the conclusion of the tax year. To ease the payment process, the solidarity contribution can be made in eight equal monthly installments, with the initial payment due by the last working day of the month following the return submission deadline.
The introduction of this contribution highlights Greece’s commitment to sustainability and reducing its dependence on fossil fuels. By imposing this temporary solidarity contribution, the government aims to generate additional revenue while encouraging companies to explore greener alternatives and invest in renewable energy sources.
The publication of Decision A. 1069 by the Greek Public Revenue Authority serves as a clear directive for affected companies, enabling them to fulfill their obligations regarding the temporary solidarity contribution.