On 2 August 2023, the Minister for the Environment, Climate and Communications, Mr. Eamon Ryan, signed an order to commence the Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023. The order is effective from 2 August 2023.
This Act provides for the implementation of the temporary solidarity contribution outlined in Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices.
Companies within the scope of the temporary solidarity contribution are required:
- to register with the Revenue Commissioners by 30 August 2023; and
- to file their return and pay the 2022 temporary solidarity contribution to the Revenue Commissioners by 23 September 2023.
The Revenue Commissioners has prepared information and guidance on the temporary solidarity contribution, which is available on the Revenue website.
The temporary solidarity contribution will:
- apply to fossil fuel production and refining;
- apply for 2022 and 2023;
- be calculated on 75% of taxable profits which are more than 20% above the baseline of taxable profits for the period 2018-2021;
- be based on taxable profits excluding losses incurred pre-2018 and post-2023;
- be administered by the Revenue Commissioners.
