It was approved on the last 29th November, the 2017 Annual State Budget, mainly resulting on the increase of indirect taxes and a progressive reduction on taxation of income.
The following measures shall be underlined:
- Progressive reduction of the personal income tax surcharge by yield ranges;
- Creation of a new net worth tax, applicable in the threshold of 600.000 Euros to individuals and companies, with the exception, among others, of premises registered for industrial activities and tourist rental;
- Increase in 35% of the tax burden on temporary lease of properties, since the landlords may choose the applicable tax regime such proposal aims to harmonize the applicable legal regime to tourist and habitational rental;
- Increase in 3% of the motor vehicle tax, paid at the time of purchase of a vehicle;
- Increase in 0,8% of circulation tax for gasoline powered vehicles and a progressive rise between 0,6% and 0,8% intended for diesel fueled vehicles;
- Reduction of the Special Payment on Account levied by small and medium companies, from the current 1000 euros to 850 euros;
- Provision of an automatic personal income tax statement by the Tax Authorities – provisional Model 3, containing the calculation base for mechanism of deductions to taxable income, which may be changed or confirmed by taxable subjects.
Alongside the creation of a new net worth tax – the so-called “Additional Tax on Municipal Property Tax” – the fund number 28 of the General Stamp Duty General Schedule shall be revoked, with effects from the 31th December 2016 and will be extendable to the tax levied on 2017 in respect of 2016.
On the other side, shall be subject to the Tax on alcohol and alcoholic beverages certain sugary drinks and other sweeteners (under the so-called “Fat Tax”), whose revenue shall revert to the National Health System.
Regarding the Corporate Income Tax, shall be possible the adoption of taxable period different from the calendar year, provided such period coincide with the period of legal reporting.
In addition, tax benefits under Corporate Income Tax such as the reduction of the relevant tax from 17% to 12,5%, may be applicable to the first 15.000 Euro which constitute the taxable base of small and medium companies who intend to settle in interior areas and carry on activities mainly directed to farming, commercial and industrial nature as well service provider.
The import VAT regime shall also be subject to several changes, foreseeing the creation of an optional regime, which envisages the possibility of import companies undertake a reverse charge mechanism regarding importations, making such equivalent to intra-Community acquisitions of goods – in such regime, VAT amount shall be presented to customs at the time of importation. Should, however, be noted this particular regime will only enter into force on the 1st of March 2018, although such regime shall be applicable from 1st September 2017 to the importation of goods as listed under Annex C of the VAT code.