In his Opinion, Advocate General Rantos proposes that the temporary solidarity contribution on surplus profits of energy sector companies, introduced in response to the energy crisis caused by the war in Ukraine, is consistent with EU law.
In a most recent decision, the Federal Constitutional Court held that the favorable tax treatment of income from trade or business, self-employment, agriculture, and forestry (so called ‘profit income’) versus taxable income computed on a cash-basis (“surplus income”) to be unconstitutional. This privileged tax treatment of income from profits, which only applied for 2007, is considered by the court as unequal and thus not justified.
