Banks: draft, instead of tax, capital can be strengthened
“Instead of payment”, the Banks will be able to allocate “an amount equal to two and a half times the tax to a non-distributable reserve”. This reserve is calculated “among the elements of primary class 1 capital”, i.e. it strengthens the capital of the Banks. This is what we read in the government’s draft amendment which rewrites the law on extra profits from banks, which should be submitted to the Senate in the next few hours.
Banks: draft amendment, levy recalibrated over the two-year period
The tax on banks’ extra profits changes and recalibrates the withdrawal. According to what is read in a draft of the amendment that the government is expected to file in the next few hours, the tax is calculated “by applying a rate of 40% on the amount of the interest margin” for the 2023 financial year “which exceeds by at least 10% the same margin” as in the 2021 financial year. The previous version was calculated differently on the 2022 budget (5% surplus) and on the 2023 budget (10% surplus).
Banks: draft, tax cap rises but government bonds out
The maximum ceiling of the extraordinary tax on the banks’ extra profits rises from 0.1% to 0.26% “of the total amount of exposure to risk on an individual basis”, (no longer the total assets, a clarification that therefore excludes government bonds). This is what we read in a draft of the government amendment which should be submitted to the Senate in the next few hours.
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