Investment distortions could occur as a result of the solidarity contribution, according to a study by the European Parliament’s subcommittee on tax matters published on Wednesday 29 March.
Implemented in autumn 2022 (see EUROPE B13074A35), the temporary compulsory solidarity contribution will tax profits above a 20% increase in average annual taxable profits since 2018. Targeting companies in the crude oil, fossil gas, coal and refining sectors, it is similar to a windfall tax.