Taxes in Europe Database v2
Income Tax Act, current law entered into force 01.01.2000 (State Gazette 1999, 101, 903). Last amended 18.12.2014 (State Gazette I, 23.12.2014, 4), entered into force 01.01.2015.
Without taking the deductions into account, 11.6 (from 01.01.2014) per cent of the taxable income of a resident natural person is received by the local government. The remaining part of income tax and income tax paid on pensions and gains derived from the transfer of property is received by the state.
Married couples are able to submit a joint declaration if they wish to do so.
Benefits in kind are taxed under the corporate income tax regulation.
These expenses are deductible in case the individual is registered as private entrepreneur.
Losses can be carried-forward only by self-employed persons.
The deductions related to interest, education and donations and gifts are altogether limited to 1,920 EUR per taxpayer during a period of taxation, and to not more than 50 per cent of the taxpayer's income of the same period of taxation, after the deductions relating to enterprise have been made.
Benefits in kind are taxed under corporate income tax regulation.
The tax rate of 10% is applicable to the following payments made by an insurer holding to a policyholder under an insurance contract for a supplementary funded pension or payments made to a unit-holder of a voluntary pension fund:
The taxable period is one calendar year. Personal income tax returns shall be submitted to the tax authority by 31st of March of the following year. Taxpayer is required to transfer any additional amount due which is specified in the tax notice to the bank account of the Tax and Customs Board not later than by 1 July of the calendar year following the period of taxation.
The tax is collected by the Tax and Customs Board.
The Tax and Customs Board shall complete the income tax return concerning the income of a resident natural person during a period of taxation and the deductions made on the basis of the data at the disposal of the Tax and Customs Board and make the pre-completed tax return available to the taxpayer through the e-service of the Tax and Customs Board.If the taxpayer uses the pre-completed tax return, he or she is required to verify the correctness of the data contained in the tax return and submit an amended and supplemented tax return in event of incorrectness or deficiency of the data.
On 01/01/2015 (approved 02/07/2014) came into effect the increase of basic tax exempt from 1,728€ in 2014 to 1,848€ in 2015. Estimated cash based revenue effect in 2015 is ca -14 mil €, 2016 ca -19 mil, 2017 ca -20 mil, 2018 ca -21 mil. The goal is to lower tax burden of labour.
On 01/01/2015 (approved 30/06/2014) came into effect the increase of pensions additional tax-exempt from 2,520€ to 2,640€ in a year. Estimated cash based revenue effect in 2015 is ca -3 mil €, in 2016 -5, 2017-2018 -6 mil. The goal is to keep average old age pension untaxed.
On 01/01/2015 (approved 26/09/2014) came into effect the lowering unemployment insurance payment rate from 2.0% to 1.6% which affects PIT revenues. Estimated cash based revenue effect in 2015-2016 ca 4 mil €, 2017 -2018 ca 5 mln € per year. PIT increases due to increase in tax base. Low unemployment rate and sufficient reserves allow lowering the rate and decrease tax burden of labour.
On 01/01/2015 (approved 02/07/2014) came into effect the taxing agricultural subsidies. Estimated cash based revenue increase in 2015-2018 1.5 mil € per year. Goal is to increase tax revenues by widening tax base.