The Ministry of Finance has published a proposal to amend the Individual Income Tax Act (PIT Act) for public consultation. The main changes suggested are the following:
- introducing 10% statutory expenses deductible for individuals deriving income from the sale or exchange of financial assets, including virtual currencies;
- introducing a tax relief for individuals registering cash receipts with a digital receipt system of the National Revenue Agency;
- expanding the definition of "employment relationship" to include legal relationships that, by their nature, involve labour without the need for a formal employment contract; and
- exempting income of individuals from the sale or exchange of movable property to persons having the right to collect, transport, recover or dispose of waste in accordance with the Waste Management Act from taxation.
The Ministry also proposed amendments to the Tax and Social Security Procedure Code (TSSPC) by introducing financial incentives for disclosures to tax authorities.
The proposal outlines a financial incentive for persons submitting information containing specific facts and circumstances that were not known to the tax authorities, which lead to the establishment and collection of additional taxes, mandatory insurance contributions and interest in connection with hidden and/or undeclared taxable transactions, income, profits and assets. Under this proposal, if certain conditions are met, individuals who disclose such information may receive remuneration equivalent to 10% of the additional revenue collected by the budget as a result of their disclosures.
The public consultation, issued on 26 September 2023, runs until 26 October 2023.