Tax Alert Act Amending and Complementing the Personal Income Tax Act
- deduction of social security contributions paid abroad from the annual tax base
The compulsory social security contributions paid abroad at the person’s expense shall be deducted from the employment income annual tax base. By virtue of Art. 50, para. 5 of the Personal Income Tax Act the amount of the social security contributions is evidenced via a certificate issued by the competent authorities of the other state.
(b) Income from Other Economic Activity
- statutory expenses
The statutory expenses for the different types of economic activity are set forth as follows:
* Under the new letter h) of p. 26 of § 1 of the Additional Provisions of the Personal Income Tax Act the relationships under management contracts, including those with members of company management and controlling bodies, are deemed to be employment relationships. It is our understanding that the income from such activities shall be taxable as employment income and not as income from other economic activities and no statutory expenses would be deducted.
(c) rental income