LAWS TO WATCH: Personal Income Tax Act
According to the proposed amendments, which is due to enter into force on 1 January 2016, changes are introduced in the dynamics of income tax payments and reporting from capital investments, without changing the tax rate of 12% on capital profit.
The legislation deletes the provision that taxes must be paid within eight days of the realisation of capital profits. Instead, the tax rate of 12% (plus surtax) will be paid on an annual basis by 31 January for all capital profits realised during the preceding year minus capital losses. These measures are meant to assist stock market investors, especially small investors, in their accounting obligations.
The legislation also deletes the provisions that require a capital loss report, whereby an investor officially recognises capital losses, and it retracts the Finance Minister’s authority to prescribe such a report.
Proposed by: Ministry of Finance
Note: Since the Sabor is dissolved, the government amended the legislation via bylaws