New codes, new taxes

The Finance Minister has endorsed the monthly cap to be used for calculating the taxes on salary and pension-related incomes. This is based on the annual taxation cap for the fiscal 2004 for calculating advance payments, as stipulated in the Fiscal Code in effect since January 1. According to this cap the minimal tax quota, 18%, is levied on the monthly incomes below 2,400,000 ROL inclusive. The maximum quota, 40% will be levied on the monthly incomes above 13 million ROL. The fixed non-taxable amount for pension-related incomes is 8 million ROL. The annual tax for 2004 will be computed by applying the cap for this year to the annual global taxable income, adjusted by the inflationary rate achieved in 2004 minus half of the inflationary rate projected for this year. The basic personal deduction was set to 2 million ROL a month effective January 2004. The taxpayers are entitled to additional personal deductions, especially for those people they provide for. Also deductible from the annual taxable income as of 2004 will be the expenses made for improving the thermal comfort of the home, the private health care insurance premiums, the contributions to occupational pension schemes, the premiums for insurance of homes, up to 1,000 euros. The guidelines for acknowledging the deductibility of the above-mentioned expenses have yet to be set. The manner of enforcing the Fiscal Code provisions was decided during the Government’s last session in 2003, when the Fiscal Procedure Code was enacted by an emergency ordinance. ZF