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Following the adoption of the new tax law, which the parliament will vote on 11 January, the vast majority of employees will pay higher taxes primarily due to the cancellation of the tax exemption. Freelancers, owners of rented property, small and medium-sized enterprises and large companies that do not distribute dividends will pay the most.

There will be tax concessions only for joint-stock and limited liability companies that distribute dividends whereas the tax rate for the rest will increase from 20% to 26%. This measure is considered to be directed against market growth. The economic leadership of the country ignores the problems of the market and the large companies that stand firm during the crisis despite the decline and increases of the taxes on their profits. It also ignores the fact that the tax system in the neighbouring countries is benign, which allows them to attract foreign investment.

Under the new law, approximately one million employees and pensioners without dependent children and with incomes above 23 thousand euro and one million employees with one or more children and annual incomes above 9 thousand euro will pay higher taxes due to the cancellation of the non-taxable minimum of 5 thousand euro and of the additional non-taxable amounts for children. Furthermore, the change of the tax bracket will increase the tax deductions by 3% to 185%. On the other hand, liberalized professions with incomes up to 55 thousand euro and collective companies will be additionally taxed. The new law will cancel most of the reasons for tax exemption and will retain only the tax exemptions for costs of hospitalization, medicines, donations and support money from the husband. In 2013, taxpayers must collect receipts corresponding to 25% of their income to get tax reductions amounting to 2,100 euro.

Deposits and shares

The interest on deposits will be taxed at a rate of 15%. The interest on individual deposits in foreign banks will be taxed at 20% and that of legal entities – at 33%. The profits from the sale of shares listed on the stock exchange will be taxed at 20% from 1 April 2013 onwards and the tax rate for the dealers of shares will be 0.2% of the amount of the stock market transactions.

Companies

The taxation of the profits of joint-stock and limited liability companies will change as well. The tax rate for the retained earnings of companies will be 26%. The taxation on dividends will decrease from the current 25% to 11%. The taxation on the profits of single-entry collective and limited joined-stock companies will increase from 20% to 26% for the first 50 thousand euro of the net profit and 33% for the profit above that amount.

Employees with labour contracts and pensioners

There will be three tax rates on the income of employees with labour contracts and pensioners: 22% on income of up to 25 thousand euro, 32% on income of up to 42 thousand euro and 42% for higher incomes.

Higher taxes will be paid by families with:

- an annual income of more than 23 thousand euro and one child

- an annual income of more than 22 thousand euro and two children

- an annual income of more than 21 thousand euro and three children

The law will introduce an allowance of 40 euro. It will be paid for each child each month as compensation for the cancellation of the non-taxable minimum for children. An allowance of 500 euro per year for each child will be introduced for families with more than three children and with an income not higher than 45 thousand euro.

The amount of income tax of employees with labour contracts and pensioners will be reduced by 10% for medical expenses and support money.

Liberalized professions

The net income of sole trading companies, companies providing services and liberalized professions will be taxed at the rate of 26% for the first 50 thousand euro and 33% for the amounts above this income. A lower tax rate of 13% for the first 10 thousand euro of the annual income will apply for young artisans during the first three years of their business. A positive aspect is the reduction of the social security contributions of the liberalized professions. Those having signed a contract for the rendering of services will be taxed as employees with labour contracts rather than as artisans, when they have a signed contract with any individual person or entity for the services they render if the number of their employers does not exceed three. When they are more than three, at least 75% of the revenues should come from one employer.

Fee for craft activity

The fee for the self-employed will increase from 500 to 650 euro and for the companies - from 500 to 1,000 euro for the head office and from 300 to 600 euro for each branch.

Sailors

The rates of separate taxes on the salaries of officers and lower-ranking crew members of the commercial maritime fleet will increase from 6% to 15% for the officers and from 3% to 10% for the lower-ranking crew members.

Farmers
 
The net income from farming will be taxed at 13% from the first euro from 2014 onwards. All farmers will have to work with an account book in 2014 and to issue sales invoices and receipts. Particularly for 2013 (i.e. the financial year 2014), the farmers will be taxed at the rates for employees with labour contracts.