On Monday, the list of legislative and programmatic work of the Council of Ministers, maintained on the website of the Prime Minister’s Office, published information on the work on the bill amending the Law on Personal Income Tax, the Law on Corporate Income Tax and some other acts. The draft, which the Ministry of Finance is working on, is expected to be considered by the government in the third or fourth quarter of this year.
“The proposed solutions respond to the current needs for organizing tax regulations, eliminating doubts and discrepancies in interpretation and making the tax system more rigorous. They implement the current government’s programmatic decisions regarding the construction of a simple, user-friendly and understandable tax system,” it said in an entry on the website of the Chancellery of the Prime Minister.
The amendments to be introduced by the proposed law include proposals that – according to the list of legislative works – will be beneficial changes for taxpayers. These include: that the income of all non-governmental organisations be exempted from corporate tax, excluding business activities. In addition, the proposed law should include provisions aimed at “equalising the tax situation of persons receiving benefits paid to meet family needs (the property regime between spouses will not affect taxation)”. The amount of compensation paid to the injured party by the policyholder under the deductible is also exempt from tax.
The amendments beneficial to taxpayers that should be included in the bill also include tax exemption for aid received due to difficult financial situation and tax benefits for thermal modernization expenses incurred as part of projects implemented by local government units (so-called umbrella projects). The bill should also include a clear indication that the taxpayer will be able to reduce the income that forms the basis for calculating the solidarity tax for losses from previous years.
The proposed law is also expected to include more stringent changes regarding the taxation of family foundations. Changes are planned for the IP Box preference (a tax relief for taxpayers carrying out research and development activities) – an employment requirement will be introduced. The basis for calculating the solidarity tax will also be expanded to include qualified income taxed by the IP Box and benefits received by beneficiaries of a family foundation.
According to the entry, the proposed change will also include a technical and organizational part; among others, elimination of duplicate tax exemptions for scholarships granted to students by local government units and elimination of “dead” provisions. (PAP)
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