Monday , June 21 2021

Line tax tests: extension of the flat-rate system



The first indiscretion about the content of art. 4 of the budget act for 2019 confirm the government's intervention in the case flat tax for VAT numbers and small businesses(see press release of the Council of Ministers No. 23 of October 15, 2018). The new system – instead of establishing a real flat tax – consists essentially ofextension of the lump sum system thresholds (in accordance with Act No. 190/2014), thus ensuring applicationrate 15%, replacing the progressive tax on personal income, up to 65,000 euro turnover / collection.

In addition, access to the new flat-rate system would no longer be conditional on compliance with the expenditure limits for employees and co-operators, currently equal to EUR 5,000, in accordance with Art. 1, paragraph 54, letter b) of the Act No. 190/2014 and for investment goods currently equal to EUR 20,000 in accordance with c).


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