Against the background of the government change, long-term discussions have been held on the expected tax amendments, in fact, first of all, on the cancellation of the amendments already planned. Now, i.e. as of the end of the year, a certain amount of clarity has been achieved. The President of the Republic has promulgated the so-called draft package of amendments to several acts and at present we can talk about major amendments to the Income Tax Act and Social Tax Act to take place next year as well as the year after next. Of course, everything may change again, should the existing government coalition fall apart, but we will certainly see what happens in the near future.
Until then, one of the most urgent questions that accountants have faced is the social tax rate in force from the next year. In order to pay salary in January, accountants must have their programmes configured in advance according to the social tax rate to be imposed on payouts starting on New Year’s. There is not much time left till the end of the year.
The new package cancelled the amendment to section 1 of the Act to Amend the Social Tax Act, Income Tax Act and Other Acts (passed on 15 June 2015) with which the social tax rate was lowered from 33% to 32.5%. In plain language, this means that the expected decline in the social tax rate will be cancelled and the social tax rate in force from 2017 will continue to be 33%.
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