excess profits tax

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Excess profits tax

Additional federal taxes placed on the earnings of a business, used only in time of national emergency such as war.

Excess Profits Tax

A tax imposed on a company's profits over a certain amount. Excess profit taxes are imposed in order to generate more revenue for the government, especially during national emergencies. In the United States, excess profit taxes have been implemented during wartime. There are also periodic debates on whether to impose an excess profit tax on private industries thought to be necessary for consumers in order to discourage profiteering or price gouging. Particularly, oil and gas companies have been targeted for this form of the excess profit tax. See also: Windfall Tax.

excess profits tax

A temporary tax levied on business profits during a period of national emergency. For example, the federal government may levy an additional corporate income tax during wartime to generate extra government revenues.
References in periodicals archive ?
The Commissions investigation into the Belgian Excess Profit tax scheme was opened in February 2015.
According to the press release, the Commission takes the view that multinational companies that received an excess profit tax ruling were given an unfair competitive tax advantage over their stand-alone domestic competitors.
RBC Daily reported this morning that in order to address this issue, the government is considering the introduction of an excess profit tax for the oil industry.
While we do not expect an excess profit tax to be widely introduced in the next twot othree years, that the government is even considering this approach is positive, in our view.
Excess Profit Tax Could be Introduced for LUKOIL's Caspian Fields
Vedomosti reported today (26 Oct), citing LUKOIL's CEO Vagit Alekperov, that the Ministry of Finance is considering the introduction of an excess profit tax (EPT) for Caspian oilfields.
Having said all this, we note that patchy changes to the tax code could inhibit the chances of structural tax reform, in particular the idea of a greenfield excess profit tax, which was expected to replace MET for new projects.
Profit-based taxation for greenfield projects is likely to be introduced in 2014, implying replacement of the recently increased Mineral Extraction Tax (MET) with an excess profit tax at 27%.
An excess profit tax should be introduced and the Mineral Extraction Tax abolished at the same time from 1 Jan 2012.
Equally, according to statement made by Deputy Prime Minister Igor Sechin in May, the government is to introduce its proposals on an excess profit tax to Vladimir Putin by the end of 2010.