Amendments of 6 tax laws came into force on 30 May 2013. The amended laws regulate personal income tax, property tax, corporate income tax, tax procedures, mandatory social insurance contributions and excise taxes.
We highlight the following changes in these six tax laws:
Tax Procedure And Tax Administration Act
- The official opinions of the Ministry of finance will become legally binding.
- Limitation of contributions for compulsory social insurance.
- As of 01.01.2014, instead of 35 forms of tax returns, introduction of a single tax return, which is to be submitted only electronically.
- Payment of wages with the prior filed tax return to the Tax Administration.
Corporate Income Tax Law
- Increase the percentage of the expenses recognized for tax purpose for the financing of health care, educational and humanitarian institutions, social protection, as well as cultural and sports from 3.5 to 5.0% of revenue.
- Withholding tax on payment for purchase of raw materials and waste in the amount of 1%.
- Introduction of a right to a tax credit for investments in development of intangible asset.
Personal Income Tax Law
- Reducing the payroll tax from 12% to 10%.
- Increased tax-free earnings from 8,776 to 11,000 dinars.
- The reduction of the effective tax rate on income from renting own property from 16% to 15%.
- Increased annual turnover that can be paid from self-employment tax on a lump sum basis from 3,000,000 to 6,000,000 dinars.
Law On Mandatory Social Security Insurance Contributions
- Increase of contributions for compulsory pension and disability insurance on salaries of employees from 11% to 13%.
Property Tax Law
- The basis of property tax for taxpayers who keep the books is the fair value declared on the last day of the fiscal year (instead of the book value).
- Increased the amount of tax-free on gifts and inheritance from 30,000 dinars to 100,000 dinars received from the same person in a calendar year.
Excise Tax Law
- Introduction of excise duty on biofuels and bioliquids.
- Deferment of payment of excise tax on lodging in a customs warehouse if the customs warehouse at the same time is registered as excise warehouse.