FISCAL PACKAGE 2019

Information about the fiscal package 2019

  • Personal income tax from employment

The upper limit of 13% taxable income from employment increases from ALL 130,000 / month to ALL 150,000 / month. The new personal income tax scheme is as follows:

0% – for employment income up to ALL 30,000 (gross salary);

13% – for employment income from ALL 30,001 up to ALL 150,000

23% – for employment income over 150,000 ALL

  • Minimum Wage

The minimum wage for employees who have an employment contract is ALL 26,000 (approximately EUR 210).

 

  • Tax on dividend

The tax rate on dividends distributed to shareholders and the profits distributed to owners is reduced to 8% (from 15% in 2018).

  • Value Added Tax

All supplies of inward processing services intended to be re-exported by authorized taxable persons and their subcontractors for inward processing regime operations are treated as “Exports” and the VAT rate becomes 0%.

The reduced VAT rate of 6% applies to the provision of advertising services by any audio-visual media.

The reduced VAT rate of 6% applies to the supply of passenger public transport vehicles using electric motors with ten or more seats. This measure applies until 31 December 2021 (10% from 1 January 2022).

The reduced VAT rate of 6% applies to the supply of books of any kind.

  • Exemptions from VAT

Transactions of general interest such as the supply of agricultural machinery, the supply of agricultural inputs and some supplies of veterinary services become supplies exempted from VAT. The list of agricultural machinery benefiting from this exemption shall be determined by decision of the Council of Ministers.

Imports of raw materials carried out by authorized manufacturers and used in the production of medicines (excluding dual use cases) are exempt from VAT. The list of the aforementioned materials is determined by decision of the Council of Ministers.