On Jun. 20. 2024, the Law on Income Tax (Law IX-675) 5, 12, 17, 30, 33, 34, 35, 382, amendment of Articles 41 and 43 and adding article 30 to Law XIV-2774 (the law).
Law provisions will enter into force on Jan. 1, 2025 and will be applied in calculation and when declaring corporate income tax for 2025 and subsequent tax periods.
Amongst other things, the law provides that the currently established corporate tax rates of 15 percent and 5 percent are replaced, and increased by 1 percentage point.
For instance, a standard corporate tax rate of 16 percent has been established, and a preferential corporate tax rate of 6 percent has been established via the provisions.
Small companies, under 10 employees and income for tax period under €300,000, for taxable profit is unchanged at 0% tax of these companies' profits in first tax period.
Taxable income includes life insurance premiums received by insurance companies, with contract over 10 years or if benefit paid upon beneficiary's retirement age.
Specifically according to Law on the Accumulation of Occupational Pensions that is considered as a reward for insurance companies providing life insurance.
Also, funds administration, investment, services are classified as taxable income.
That part of life insurance premiums that is invested by the policyholder or in favor of the beneficiary, continues to be classified as tax-free income, according to provisions.
