1. Deemed income of the Member of the board
Starting from year 2015 the new amendment was introduced concerning the deemed income of the member of the board i.e. it states the duty to apply the personal income tax to the so called deemed income during the fiscal year if the following conditions are met:
The company did not have any registered employee or member of the board who was receiving at least minimum salary (for 2014 the minimum gross salary was 320 EUR, but for 2015 it is stated as EUR 360);
The monthly turnover exceeds 5 minimum wages (1800 euros).
This rule is not applicable for the companies in their first year of operation or in case a member of the board is having income not smaller than the 5 minimum wages in other enterprise, both operating as a group of companies according to the Law on Enterprise Income Tax.
2. Enterprise income tax minimum
The minimum income tax of EUR 50 is set in case when the calculated income tax according to the declaration prior to covering the loss of the pre-taxation period doesn’t form or is less the EUR 50.
! The minimum of income tax (EUR 50) will not be considered as an overpayment.
However, there will be cases the minimum tax shall not be applied if one of the conditions is met:
- the company is registered in the Register of Enterprises in the taxation period;
- the process of liquidation of the company has been finished in the taxation period;
- the taxpayer has made personal income tax or social contributions for an employee during the taxation period.
3. Other important amendments
As mentioned before, The minimum wage is changed from 320 to 360 euros. Also the minimum wage per hour is increased to 2.166 euros (before it was 1.933 euros).
Maximum threshold of the following social allowances has been canceled: sickness benefit, unemployment benefit, maternity and paternity benefit, parental allowance.
Personal income tax is reduced form 24% to 23%.
The State family allowance is increased – 11.38 euros for the first child, 22.76 for the second and 34.14 euros for each following.
Increased tax rate for the microenterprises from 9% to 11% (for the part of turnover exceeding the threshold of EUR 7000).
A new Law of Arbitration is enforced starting from 1st of January 2015 thus abolishing
Part D of the Civil Procedure Law.
This newsletter only contains information on legal amendments, it does not reflect views of Grant Thornton Rimess and shall not be treated as advice from Grant Thornton Rimess.