OMV gets away with the energy solidarity tax this year, sources say

The OMV company is not eligible to pay the energy solidarity tax this year, say political sources, after the European Commission responded to the government regarding the transposition into Romanian legislation of the European directive that provides for the overcharge of companies in the field.

The Government of Romania received from the European Commission the response to the request for clarifications related to how it imposed the solidarity tax of 60% on the profit of oil companies, and from it it follows that OMV Petrom, the company that would have been the most affected by this tax , he doesn’t have to pay it. However, there will be ANAF checks and there will be discussions with the European Commission regarding the commercial activities of OMV Petrom in Romania.

The spokesperson of the PSD, Radu Oprea, said on Tuesday, in the National Audience program on DigiFM, that the answer received from the Commission shows that the threshold of 75% of the turnover from the areas subject to taxation (crude oil extraction, natural gas extraction, coal extraction and manufacture of products obtained from oil refining) cannot be reduced.

“The answer came from the European Commission, the answer has three points. The first refers to 75%, to this percentage of turnover where the commission responds that by regulation it is the minimum that can be applied. So, Romania applied the regulation correctly, you cannot reduce it more. The Commission’s second answer says that the five CAEN codes from the European regulation are correctly applied in the emergency ordinance and there is another question that said whether the products resulting from refining, diesel, gasoline, if they are included in these codes. Here, the European Commission responds that they need more details to better understand the business model”, declared Radu Oprea.

He stated that at the European level the 75% threshold was set by the EU Energy Ministers. “If we ask about that figure of 75%, this regulation was discussed in the Council of Ministers of Energy”, Oprea also said.

The OMV group announced early this month that it is not eligible to pay the solidarity tax in Romania.

According to the emergency ordinance adopted last year, commercial companies that carry out activities in the oil, natural gas, coal and refinery sectors will pay a solidarity contribution of 60% for what exceeds by more than 20% the average profits over the last four years, respectively 2018, 2019, 2020 and 2021. However, the condition is that 75% of the turnover is obtained from the extraction of crude oil, the extraction of natural gas, the extraction of oil and the manufacture of products obtained from oil refining. From the amount collected in this special fund, at least 70% will be distributed to finance strategic investments, as well as investments in energy efficiency and energy from renewable sources.

For the first 9 months of 2022, OMV Petrom has already paid royalties, additional taxes and other industry-specific contributions of approximately 5.2 billion lei to the State Budget of Romania, to which approximately 1.6 billion lei in profit tax is added. In total, for the first 9 months of 2022, they represent approximately 60% of gross profit before tax and have increased more than 6 times compared to the same period of the previous year. Preliminary financial results for 2022 and Q4 2022 will be published on February 2, 2023.

energyEuropean CommissiongasoilOMVOMV PetromRomaniasolidarity taxtaxation
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