January 12 (SeeNews) - Romanian oil and gas company OMV Petrom [BSE:SNP] believes that it will not have to pay solidarity tax on windfall profits for last year imposed by the government in December, it said in Thursday.
"Based on our 2022 preliminary financials and the provisions of this Emergency Ordinance, OMV Petrom is expected not to be subject to this solidarity contribution for the fiscal year 2022 having less than 75% of its turnover in the defined areas: extraction of crude, extraction of natural gas, extraction of coal and refining business," OMV Petrom said in a statement filed with the Bucharest Stock Exchange, BVB.
OMV Petrom said that during the first nine months of last year, it paid to the Romanian state budget royalties, supplementary taxes, and other specific industry contributions amounting to 5.2 billion lei ($1.13 billion/ 1.03 billion euro), in addition to 1.6 billion lei in corporate income tax. In total, these accounted for approximately 60% of the January-September profit before tax and increased by more than six times on the year, it noted.
The company will publish preliminary figures for fiscal year 2022 on February 2.
In December, the government approved an emergency decree enforcing a solidarity contribution of 60% of taxable profits of oil and natural gas producers and oil refining companies that exceed by more than 20% the average profits recorded in the 2018-2021 period. The decree aligns Romanian legislation with the EU regulation adopted in October that introduced a temporary solidarity contribution. Following the measure, the government aims to raise 3.9 billion lei in budget revenues in 2023.
OMV Petrom's shares traded 1.67% higher at 0.4555 lei on the Bucharest Stock Exchange by 0945 CET on Thursday.
(1 euro=4.9328 lei)
OMV Petrom SA is among the biggest companies in SEE. You can download our SEE Top 100 ranking
here or subscribe to our free Top 100 newsletter
here