Fiscal Code changes done

The Fiscal Code has reached the stage of mediation between the versions enacted by the Senate and by the Chamber of Deputies. It shed the deductibility of the interests on mortgage credits in the process and gained an increase from 10% to 40% of the tax deducted at source from the incomes made by individuals from streams other than salaries, pensions or investments. Depending on the final version of the Code, the 40% could be levied on the income made from insurance premiums paid by a legal entity for an individual, in case the latter is not bound by a wage-generating tie with the former, the gains from insurance companies, the incomes the pensioners get from their former employers and other incomes not specifically marked as non-taxable. As soon as the Parliament votes the final version of the Fiscal Code, the Finance Ministry will forward the enforcement guidelines to the Government. The delay in the parliamentary debate of the Code rendered the completion of the guidelines impossible due to the lack of final versions of the texts to which they were supposed to refer. Under the circumstances, many clarifications are likely to emerge no sooner than January 1, particularly because the initial version of the Code has been repeatedly modified in the Parliament. ZF