Finance Law 2019
The main innovations introduced by the Finance Law 2019 for management provided by Law No. 56/2018 of 27 December 2018
In the Matter of Corporate Tax and Personal Income Tax
- Reduction of the corporate tax rate for high value-added sectors
- Continuation of incentives for business creation through exemption from income tax or corporate tax
- Additional deduction of depreciation for renovations
- Increase in the value of fully depreciable assets
- Encouragement for companies to renew their operating assets
- Establishment of a legal revaluation system for assets in industrial companies
- Revision of late payment penalties for taxes
- Support for the financial restructuring of hotels
- Elimination of the privileged regime for exports and financial institutions working with non-residents
- Establishment of a contribution for the benefit of social security funds
- Postponement of the application of the 35% tax rate for certain companies
- Imposition of a 25% withholding tax on the permanent establishments of resident companies in tax havens
In the Matter of VAT, Customs Duties, and TCL
- Clarification of the tax regime for real estate promotion
- Reduction of taxes on 4-horsepower vehicles
- Exemption from consumption tax and circulation tax for vehicles with 8 and 9 seats for persons with disabilities
- Reduction of the tax burden on built properties
- Reduction of the VAT rate applied to household internet services
In the Matter of Registration and Stamp Duty
- Increase in the value of housing exempt from proportional registration duties
In the Matter of Encouragement for Investment
- Suspension of VAT on equipment intended for the agricultural sector (Article 36 of the 2020 Finance Law)
- Extension of incentives for companies to list their shares on the stock market (Articles 37 and 38 of the 2020 Finance Law)
- Clarification of the scope of Article 15 of Law 2019-47 of 29 May 2019, relating to the improvement of the investment climate (Article 29 of the 2020 Finance Law)
Other Provisions
- Measures to facilitate the regularization of tax debtor situations
- Obligation to declare bank and postal accounts
- Development of a database related to bank and postal accounts
- Obligation to declare the existence of associations
- Harmonization of tax legislation with international standards on transfer pricing
- Lifting of professional tax secrecy on certain powers and public enterprises
- Establishment of a monitoring mechanism for certain products
- Encouragement of small operators to register in the tax system and with the CNSS
- State coverage of employer contributions for the textile, clothing, leather, and shoe sectors
- Creation of a regional bank
- Activation of the role of electronic administration
- Encouragement of remote registration for schools, colleges, and high schools
- Rationalization of the use of cash funds
- Expansion of the use of electronic invoicing
- Setting a maximum deadline for notification of the tax assessment order
- Activation of international agreements for the exchange of information and administrative assistance in tax matters