In a statement for ATA, the Deputy Minister of Finance and Economy, Vasilika Vjero announced that the changes in the law “On Income Tax” foresee, among other things, the inclusion of two categories as subjects of income tax.

Specifically, natural persons including individuals, the self-employed and commercial natural persons, will be subject to personal income tax.

“The draft law for some changes in the law “On income tax”, approved by the government, has arrived in the Assembly and discussions have started in the parliamentary committees. The joint work with the Parliament’s committees has already started to review it article by article”, said Vjero.

“The Commission for Economy and Finance has arranged for a series of meetings or roundtables with experts in the field or chambers of commerce to hear once again their feedback on the government’s proposal,” the deputy minister said.

She believes that many of their proposals will be reflected in the draft law during the article-by-article discussions in the Commission.
In the new bill, taxable personal income is classified into 3 categories: income from employment; business income; investment income.

Personal income according to the 3 groups above, are foreseen to be taxed: the first two groups (employment income and business income) according to a progressive system.

Specifically, employment income will be progressively taxed at 13% and 23% rates, while business income will be progressively taxed at 15% and 23% rates.

Meanwhile, the third group (income from investments or passive capital) will be taxed at the 15% tax rate, while dividends are taxed at the 8% tax rate.

Corporate income tax has a tax rate of 15%.

/sm/