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Italy Plans One-Off Windfall Tax For Energy Firms

ENERGY

Italy plans to apply a 50% one-off windfall tax next year on income of energy companies that have benefited from the surge in oil and gas prices, according to a draft of the government's 2023 budget seen by Reuters.

• The tax has a rate equal to 50% of the part of 2022 corporate income, which is at least 10% higher than the average income reported between 2018 and 2021. It has a ceiling equal to 25% of the value of net assets at the end of 2021.

• Under the new terms set in the budget, 7,000 energy firms would have to pay the amount due by mid-2023.

• Previously, a scheme was outlined which envisaged a 35% tax running from January until July 2023 and calculated on energy companies' profits, rather than income.

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