excess profits tax

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excess profits tax,

levy on any profit above a standard level. Chiefly a wartime phenomenon, it is intended to increase revenue during periods of distress and to prevent businessmen from taking unfair advantage of the increased government spending and consumer demand that normally accompany wars. In 1917 the U.S. federal government adopted such a tax, which continued in various forms and at increasing rates until 1921. It was revived by federal legislation during World War II and during the Korean War. The tax was imposed on the excess over a firm's peacetime earnings or over an arbitrarily decreed earning rate. Great Britain levied an excess profits tax from 1915 to 1921, with a rate varying from 40% to 80%. During the era of World War II, Britain's excess profits tax was revived, with tax rates increased to 100%. Critics contend that such levies discourage productive enterprise by eliminating the profit motive.
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It has since 2010 put its PSAs with foreign companies under review and imposed the Excess Profit Tax (APT) system.
The report outlines the governing bodies, governing laws, licenses, rights and obligations and key fiscal terms which includes subsoil use tax, excess profit tax, bonus (subscription and commercial exploration), corporate tax, property tax, withholding tax, value added tax (VAT), excise duty and compulsory contributions
In this edition of the Global Pricing Newsletter, the Sidley Austin LLP Global Life Sciences team reports on important developments in Australia, Belgium, Canada, China, the On January 11, 2016, the European Commission issued a state aid decision concerning the Excess Profit tax scheme applicable in Belgium since 2005.
The report outlines Uzbekistan's governing bodies, laws, mining licenses, rights and obligations and tax-related information which includes subsoil use tax, excess profit tax, bonus (subscription and commercial exploration), corporate tax, real property tax, withholding tax, depreciation, losses carried forward and value added tax (Vat).
2bn ($28mn) were made for the corporate income tax and excess profit tax, resulting in a high effective income tax rate of 46% in 2Q12 (vs 33% in 1H11 and 27% in 1Q12).
The new structure includes an excess profit tax, and limits foreign participation to 50% in each offshore project with no guarantees of operatorship.
The Kyrgyz government plans to levy excess profit tax as part of its Safety and Decent Life Project, the Prime Minister said.
Texas Senator Tom Connally may have contributed to such fear, characterizing the tax as "permanently sound" and moving to reduce excess profit tax rates rather than repeal the tax altogether.
Astana has since 2010 put its PSAs with foreign companies under review and imposed the Excess Profit Tax (APT) system.
Medvedev Unhappy with 60-66: Government Mulls Excess Profit Tax