Approved amendments to the Income Tax Law
On 2 December 2018, the law no. (38) for the year 2018 'Amended Law' to the Income Tax Law no. (34) for the year 2014 ('Current Law') was approved and officially published in the official Gazette.
A high level summary of the key amendments under the Amended Law are set out below:
- Increase of the corporate income tax (CIT) rates for the industry sector.
- Introduction of new industrial sector CIT reductions.
- Exemption from CIT for venture capital funds.
- Introduction of a national contribution tax to apply at different rates depending on the sector.
- Introduction of thin capitalisation rules for related party debt.
- Reduction of tax allowances and increase in tax rates for individual taxpayers.
- Amendments to certain penalties and tax administration matters.
The Amended Law entered into force on 1 January 2019.