Bracket 4 is set only for the years 2013, 2014 and 2015.
Income from employment, income from business activities, income from primary agricultural and primary forestry business and from the transfer of property rights and other income is taxed on synthetical basis under progressive tax rates.
Tax on income from capital (on interest, dividends and capital gains) and from renting out property is paid according to a flat income tax rate. The tax rate on dividends, interest and income on renting out property is 25%. The tax rate for capital gains depends on the holding period: 25% for a holding period of up to 5 years, 15% for a holding period from 5 to 10 years, 10% for a holding period from 10 to 15 years, 5% for a holding period from 15 to 20 years and 0% for a holding period greater than 20 years.
Under certain conditions personal business income up to 100,000 EUR may be taxed on a scheduled basis using a lump-sum deduction regime (the tax base is determined on the basis of lump-sum costs accounting for 80% of income). The tax rate is 20%. The tax is treated as a final tax for residents and non-residents alike.