Drafting the new objective values

The Finance ministry is preparing increases in real estate objective values because they believe that despite the crisis, the commercial prices can hold and in many cases remain higher than those of the tax offices.

Real estate taxes and reforms in the fiscal framework of companies were discussed at yesterday's meeting between the Finance ministry and representatives of political parties. Although there is every indication that this government will not manage to complete the tax reform, which will be passed on to the next one, the economic team continues the drafting of measures to be adopted:

-    real estate taxation: they are examining changes in taxes on income from rents and VAT on the construction of new buildings. They are promoting the integration of certain taxes on real estate, the establishment of a single tax that includes property tax (CAB) and the special fee for electrified structured plots which is received through the PPC accounts

-    independent taxation: concern has been raised by the proposal of the IMF technical team to the government for a independent tax at 20% - from the first Euro - on income from rents, deposits, bonds, equities and mutual funds

-    objective values: in accordance with the memorandum, the government must align objective property values with market prices by June 2012. However, the decrease seems to be moving forward only in extreme cases. Instead, the investigation will focus on areas where there is justification for an increase in taxable property values, maybe even more than 100%. This will also sweep the special fee for electrified buildings in 2013 and another 10 taxes on real estate possession and acquisition

-    taxes on companies: they are considering reducing tax rates for legal entities. ND’s proposal for company taxes is for a 15% rate on distributed profits and 15% on retained profits, leading to a decrease in the average tax burden at 27.5%. For now, however, the prevailing idea is for taxation at 15% (instead of 20%) on retained profits and 18% (instead of 25% and 15%) in distributed ones, leading to a 30.3% average tax burden.