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More tax system changes coming this fall

Another series of tax reforms in current legislation, most of which are not exclusively revenue-related, are expected in the autumn, part of continuing efforts to meet memorandum-mandated fiscal targets through 2018.

Changes affect the income tax rate, the VAT rate, foreclosures and auctions of seized property, the framework for collecting arrears owed to the state and even a so-called certification verifying that a business does not have outstanding tax obligations to the state.

The latest round of tax-related measures must reportedly be ratified by Parliament by the end of September, so that implementation comes at the beginning of 2017.

 A package of “9+1” measures are envisioned.

Specifically, the most important changes, according to the government side, aim to simplify the income tax framework; increase the VAT-free ceiling for businesses to 25,000 euros in annual turnover; modify the tax rate for mergers, buy-outs and reserves held by legal entities; make the penalties for uninsured vehicles stricter; a new framework for investments made by business cooperatives; lower fines for alleged infractions, as well as an updated legal framework for collecting taxes from off-shore entites. Finally, the finance ministry wants to allow for more options in managing arrears by large enterprises that remain viable as business entities.