National Payment Card System pays windfall tax of nearly 1.8 bln rubles in 2023

MOSCOW. April 3 (Interfax) - National Payment Card System (NPCS) paid excess profit tax, the so-called windfall tax, totaling 1.771 billion rubles in 2023, NPCS said in a financial statement.

NPCS has included the windfall tax in other taxes and levies, which totaled 2.14 billion rubles in 2023.

The Russian government implemented the one-off windfall tax on January 1, 2024, for large companies whose average respective profits exceeded 1 billion rubles for 2021-2022. The tax rate is 10% of the excess profit for the two-year period over the same figure for 2018-2019. Taxpayers had to pay the windfall tax no later than January 28, 2024, calculating the amount themselves.

However, a company could have reduced the effective tax rate to 5% if it transferred a security payment from October 1 to November 30, 2023.

NPCS posted net profit of 25.3 billion rubles to Russian Accounting Standards in 2022 and 9.9 billion rubles in 2021.

Russia's Finance Ministry at the end of January said that revenues from the windfall tax totaled 318.8 billion rubles, with only 3.3 billion rubles credited in 2024, meaning at the 10% rate.