Finance Ministry introduces new taxes

According to the 'New Tax Liabilities Draft' presented by the Finance Ministry, the Tax on Institutions is to be lowered while the Income Tax is to be raised. Three new taxes are also introduced, and the ceiling for the Income Tax is increased. The Income Tax for football players was set at 20%.

The 'New Tax Liabilities Draft' prepared by the Treasury and Finance Ministry and expected to be presented to parliament today has been announced. According to the draft, a lowering of the Institution Tax, a raise in the Income Tax and three new taxes are to be introduced. The ceiling for the Income Tax is also to be increased while the Income Tax for football players is to be set at 20 percent.

A Valuable Estate Tax is also to be introduced after declarations are collected in February 2020. It is to be paid in two installments in February and August. State residences, diplomatic residences, residences belonging to citizens who do not have an income or only a pension income, and residences categorized as commercial goods belonging to construction owners will be exempted from the Valuable Estate Tax.

Moreover, a Digital Services Tax will take effect. This tax will apply to all advertising services, content sales (games, music, video, in-app purchases), paid services offered by social media websites as well as intermediary websites for the sale of goods and services.

An Accommodation Tax will be introduced for services offered at hotels, motels, resorts, hostels, guesthouses and camping sites. The basis of the tax will be the total of nightly costs added to the cost of other services. The tax will be declared monthly.

The draft also included a "Renouncing Legal Remedy" practice which allows a reduction for taxpayers who have won a court case that is open for appeal and waive their right to appeal. Another novelty was the introduction of an obligation for workers earning wages for the first time to declare yearly income, subject to reductions.