Oil company Shell to pay an additional tax of two billion USD in the EU and Britain

Oil and gas company Shell, one of Europe’s largest companies, will pay about two billion USD (45.9 billion CZK) in additional tax in the European Union and Britain for the fourth quarter. The company announced today that the payment is a solidarity contribution prompted by the sharp rise in energy prices last year. Last year’s decision by European governments to tax windfall profits requires oil producers and some other companies to make the payment.

„We expect the impact of the announced additional taxes in the EU (the solidarity contribution) and the impact of the deferred tax on windfall profits of energy companies in Britain on fourth-quarter 2022 earnings to be approximately two billion USD,“ Shell said.

The European Union agreed last September that oil and gas companies would pay a levy on windfall profits made in 2022 or 2023. Under the so-called solidarity contribution, companies will pay 33 percent of profits above their average taxable profit.