Creation of the systemic risk tax on banks (0.25%)

Article 42 of the 2011 Finance Act creates a systemic risk tax (Article 235 ter ZE of the General Tax Code) payable each year by credit institutions and investment firms supervised by the Prudential Supervisory Authority whose minimum capital requirements reach at least €500 million. Its rate is 0.25% of those requirements. It is due on 30 April and payable by 30 June; a tax credit avoids double taxation with an equivalent foreign tax. Its rate was raised to 0.50% in 2013 and 0.539% in 2014, before its repeal from 1 January 2019 by the amending finance act for 2014.