The Senate has adopted a legislative measure amending lax laws in connection with the effect of the new Civil Code. Become effective on 1 January 2004, the legislative measure introduces changes to the taxation of investment funds by making them subject to the existing laws, thus cancelling the proposed tax relief, and cancels the introduction of accelerated depreciation of companies’ assets from the perspective of the Income Taxes Act.
Main changes enforced by the Senate:
- Tax exemption of shares in profit and similar income of individuals and legal entities is cancelled. Payments of shares in profit and similar performance will be taxed in the same way as in 2013
- In respect of investment funds, the 5% income tax and the 15% withholding tax are maintained on payments from the funds
- The introduction of accelerated depreciation of companies’ assets is cancelled.
Either way, the legislative measure will have to be approved by the new Chamber of Deputies. The objective of the tax amendments package is mainly to harmonise the tax terms with the new Civil Code.
Every Friday, we will regularly inform you about selected tax changes.