Individual - Significant developments

Last reviewed - 01 January 2024

New tax measures introduced by Finance Law (FL 2024)

Exemption from PIT Activities Involving the Collection and Sale of Raw Milk

FL2024 eliminates the condition that the product must be intended for immediate consumption to qualify for exemption from PIT and CIT.

  • Extension of exemption to taxpayers under the Single Flat Tax regime (IFU) on the turnover from the collection and sale of raw milk.

Decrease of the Single Flat Tax Rate Applicable to Self-Entrepreneurs

The IFU tax rate for self-entrepreneurs has been reduced from 5% to 0.5%, while the eligibility threshold remains unchanged.

Taxpayers Reporting Obligations

Extension of the Deadline for Filing the Annual Income Tax Return in the Event of Major Force

FL2024 extends the maximum deadline for filing the annual Personal Income Tax return (Gn°1) to 3 months in cases of major force, aligning it with the extension for the BIC return (Gn°11), intending to synchronize deadlines. The new deadline also aligns with CIT returns (Gn°4) in cases of force majeure, providing a unified timeframe.

Extension of the deadline for payment of PIT/BIC’s liquidation balance in the event of an extension of the deadline for filing the annual BIC return

FL2024 modifies DTC, enabling the postponement of PIT liquidation balance settlement when extending the deadline for filing the BIC tax return (Gn°11).

IFU - Modification of late subscription penalties

FL2024 revises penalties for late submission of the forecast turnover declaration (Gn°12).

  • 20% surcharge for delays exceeding 1 month but not exceeding two months.
  • 25% for delays exceeding 2 months.

    Split payment of IFU

    FL2024 introduces a condition for split payment of IFU, requiring filing the forecast turnover declaration by June 30. Taxpayers filing after this date lose the option for split payment.

    Limitation period for actions for restitution of income from movable assets

    Article 55 of FL2024 amends Article 109 of the Tax Procedures Code, extending the limitation period for action for restitution of PIT/movable capital income to 4 years for all direct taxes and similar duties.

    Registration Duties

    Exemption for donations between first-degree ascendants and descendants

    Article 29 of the FL2024 anticipates modifying the provisions of Article 231 of the RC to exempt intergenerational donations made between first-degree ascendants and descendants. It is worth noting that the previous wording of this article had only provided an exemption for such donations granted between first-degree ascendants.

    Tax audits

    Amendment of the rules governing tax audits

    Articles 44 and 45 of FL2024 bring forth enhanced provisions, ensuring increased guarantees for taxpayers undergoing accounting audits, selective audits, or in-depth audits of the overall tax situation (VASFE). The amendments specifically impact Article 21-3 of the Tax Procedures Code:

    Extended Preparation Time:
    • Accounting audits and selective audits: Minimum preparation time increased from 10 to 20 days.
    • VASFE: Minimum preparation time extended from 15 to 30 days.
    Access to Taxpayer's Charter:
    • The audited taxpayer for each type of audit now has the ability to consult their charter on the DGI website.
    VASFE Audit Notice Requirements:
    • Full disclosure on the audit notice, including names and ranks of auditors, the audit period, and relevant taxes.
    • Mandatory written notification to the audited taxpayer regarding any changes in auditors during the VASFE audit.