Eurofast brings your attention that in accordance with Normative Act No. 7, dated 14.12.2023, a series of consequential amendments have been enacted in alignment with Income Law No. 29/2023 with a strong focus on alterations in Articles 65, 69, and 72.
Article 65 – Payroll's Tax Agent
Point One Amendment
Employers responsible for paying income from employment must deduct taxes from these earnings, provide the payroll list, and transfer the withheld tax to the treasury budget account by the 20th of the following month. This applies to entities, self-employed individuals, and VAT-registered trader individuals. For self-employed or trader individuals not registered for VAT, the process must be completed by the 20th of the month following each 3-month period.
Article 69 – Transitional provision
The first point of Article 69 has undergone substantial changes with the addition of three letters "e," "ë," and "f," each carrying specific provisions:
e) Starting from the tax period of 2024, all taxpayers registered before December 31, 2023, and those registering for the first time in the following year, subject to simplified profit tax or income tax, will follow the forms and tax responsibilities outlined in the amended Law No. 9632, dated 30.10.2006, 'On the local tax system,' and Law No. 8438, dated 28.12.1998, 'On income tax'ë).
Prepayments, according to Article 63 of this law, for categories of individuals providing professional services and subject to income tax from January 1, 2024, excluding the year 2024, are calculated based on the declarations of simplified profit tax and income tax from previous years, applying the tax rates stipulated in this law.
f) The withholding tax declaration at source, according to Article 57 of this law, will be applicable starting from the tax period of January 2025. For the year 2024, the existing model of declaration will be used.
In addition to the amendments outlined in the Point One, further adjustments are noted in Points Two and Five:
2) The income tax table on personal employment income for the period from June 1, 2023, until December 31, 2024, remains the same
5) As of the effective date of this law, specified in Article 72, the regulations outlined in Law No. 8438, dated 28.12.1998, 'On income tax,' will be applicable. Notably, the amended version, excluding the letters "e," "ë," and "f" of this article, will be in force. The implementation of these changes aligns with the provisions set forth in the amended Law No. 8438, dated 28.12.1998, 'On income tax,' and will remain effective until December 2024.
Article 72 – Effective date
This law comes into effect 15 days after its publication in the Official Gazette and extends its effects from January 1, 2024, except for articles 22, 23, 24, point 1 extending its effects from January 1, 2025, letter "ç" of Point One of Article 69, which takes effect upon the entry into force of this law, and point 2 of Article 69, which takes effect from June 1, 2023.
Stay informed to ensure compliance with the updated tax regulations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.