The tax package will not be approved by the end of the year, the tax changes will therefore not be effective from the New Year.
On Tuesday 4 December, the proposed amendments to the original proposal of the tax package (Press of the Chamber of Deputies no. 206) were presented during the second reading in the Chamber of Deputies. 35 amendments were filed in the end and they should be voted on together with the overall vote on the tax package either before the Christmas holidays or next year, further discussion is possible from 21 December.
The amendments do not address technical changes in most cases, but instead they are based on the programme declarations of the parties (e.g. increase in taxpayer relief, child tax credit, cancellation of super-gross salary and solidarity surcharge, decrease in VAT rates – both in general and for specific commodities, such as heat or organic food) etc.
Other important (government) amendments, which partially react to current discussions and practical problems related to the postponement of the effective date of the tax package, are part of the resolution of the Budget Committee.
They include for example:
- New treatment of deductions of research and development expenses
- New definition of the limit for participation in insurance for dependent activities
- Change of the definition of economic activity for VAT purposes related to the issues of statutory executives, more information available here, and
- Postponement of the effective date of the individual provisions of the tax package (in certain cases taxpayers will be able to choose whether they want to follow the old rules next year, or the amended ones).
We monitor the development carefully and after the third reading we will bring you detailed information – what changes were approved by the Chamber of Deputies for the various taxes and when these changes should come into force.