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Bulgaria Approves Windfall Tax on Fossil Fuel Sector — Orbitax Tax News & Alerts

On 6 December 2022, Bulgaria's National Assembly approved the law for the introduction of a temporary solidarity contribution on the excess profits of companies in the crude oil, natural gas, coal, and oil refining industries at a rate of 33% in accordance with Council Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices. The contribution is due on excess profits in 2022 and 2023 to the extent exceeding 120% of the average taxable profit in 2018, 2019, 2020, and 2021, and will be declared and paid in accordance with the procedure and within the deadline for submitting the annual corporate tax return. The law must now be signed and published in the Official Gazette to enter into force. Further details will be published once available.