Italy Introducing Excess Profits Tax on Banks

The Italian Council of Ministers has announced its approval of the Decree-Law on urgent measures for the protection of users and on economic activities and strategic investments. This includes, among other things, a 40% tax on the excess profits of financial institutions. The tax will be levied on a financial institution's net interest margin in the 2022 financial year to the extent exceeding its net interest margin in 2021 by at least 5% or the net interest margin in the 2023 financial year…