Slovak Republic parliament has accepted a draft bill for consideration proposing to extend the temporary solidarity contribution on the crude petroleum, natural gas, coal, and refinery sectors.
Originally set to apply to profits from fiscal years beginning between 2022 and 2024, the draft bill suggests levying the contribution on profits from fiscal year 2025 as well.
If approved, this extension will take effect from 31 December 2024.
Previously the Slovak Republic had published Law No. 124/2023, which brought about an amendment to the existing Law no. 519/2022 of 22 December 2022. This amendment pertains to the solidarity contribution imposed on oil companies and is based on Council Regulation (EU) 1854/2022 of 6 October 2022.
Originally, the contribution was implemented at a rate of 55% on the surplus profits generated by companies engaged in activities such as oil and gas extraction, production of coke oven products, and manufacturing of refined petroleum products.
However, as stipulated in Law no. 124/2023, the rate of the solidarity contribution has been raised to 70%. This increase was effective from 1 May 2023, specifically for calculating the contribution applicable to the tax period beginning in 2023.
