On 23 February 2023, the Italian tax authorities have published Circular No. 4/E with clarifications on the temporary solidarity (windfall tax) contribution for the energy sector.
The clarifications regarding the solidarity contribution includes the scope of the solidarity contribution, definition of qualifying taxpayers, determining the excess profits, and outlining associated administrative requirements. Additionally, the tax authorities clarified that the solidarity contribution is a temporary and extraordinary measure for 2023, and is not considered a part of the general income taxes. It is calculated based on the proportion of excess profits compared to previous fiscal years.
