Home Focus Government continues with reforms: Strategic Council for Debureaucratization presented numerous tax, economic...

Government continues with reforms: Strategic Council for Debureaucratization presented numerous tax, economic and environmental measures to boost economy and simplify business performance

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Ivan Simič, President of the Government Strategic Council for Debureaucratization, presented a proposal for measures in the field of taxation, economy and the environment. With regards to taxation, he presented as many as 28 proposals, in which the most important are reduced capital gains tax and simplification of procedures for employers and business entities in several areas. He would like to enable retirees to work indefinitely even after they retire, regulate the taxation of cryptocurrency trading and increase the allocation of part of income tax to various humanitarian and non-governmental organisations.

There are 28 proposals regarding taxation, including a unified proposal for advance tax payments and contributions – also for salaries – and a single simple REK form for calculating tax deductions, regardless of the fact that one could have different incomes that are taxed differently. The REK form would be submitted for facilitated procedures only once a month, and only at the end of the month. According to the new proposal, VAT could be calculated for information purposes in the form of e-invoices, with taxpayers sending FURS all the data necessary for estimated calculations by the 25th of the month.

 Simič emphasized that they want to shorten the deadline after which the capital gains tax is paid, hence they suggest that after 15 years the capital gains tax would no longer be calculated, which would relieve the taxpayers. In addition, they want to reduce capital gains tax and dividends from 27 to 25 percent. They are proposing a reduction in the corporate tax rate from 27.5 percent to 25 percent when renting out real estate, while allowing a standardized expense increase from 15 percent to 30 percent and a reduction in income tax rate from 27.5 to 25 percent. They are suggesting that one real estate tax should be introduced as soon as possible, replacing the existing real estate taxation with three taxes or compensations.

 

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