Information on the Fiscal Package 2019
Personal income tax from employment
The upper limit of income from taxable employment by 13% increases from 130,000 ALL / month to 150,000 ALL / month. The new personal income tax scheme is as follows:
0% - for income from employment up to 30,000 ALL (gross salary);
13% - for employment income from 30,001 to 150,000 ALL
23% - for employment income over 150,000 ALL
The minimum wage for employees who have an employment contract is 26,000 ALL (about 210 Euros).
Dividend tax and stock gains
The tax rate on dividends distributed to shareholders and profits distributed to owners is reduced to 8% (from 15% in 2018).
Value Added Tax (VAT)
All supplies of active processing services intended to be re-exported by authorized taxable persons and their subcontractors for active 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 audiovisual media.
The reduced VAT rate of 6% applies to the supply of public passenger transport vehicles using electric motors with ten or more seats. This measure is implemented until December 31, 2021 (From January 1, 2022 it becomes 10%).
The reduced VAT rate of 6% applies to the supply of books of any kind.
Exemptions from VAT
General interest transactions such as the supply of agricultural machinery, the supply of agricultural inputs and some supplies of veterinary services, become supplies exempt from VAT. The list of agricultural machinery that benefits from this exemption is determined by a decision of the Council of Ministers.
The import of raw materials carried out by authorized manufacturers and used in the production activities of medicines (excluding cases of dual use) becomes a supply exempt from VAT. The list of the above-mentioned materials is determined by a decision of the Council of Ministers
Frequently asked questions and answers for information on fiscal changes can be found in the material below: