“Lower nominal tax rates to appeal to investors”
Exceptionally high tax rates
Mazars consultants commented on the announced additional amendments to the Income Tax, to be implemented with the beginning of 2020. Tax expert Vladimir Nol says all the tax reliefs are welcome and the business community certainly appreciates the Ministry of Finance’s efforts in this regard, as the tax burden has been reduced considerably and the country is often “cheaper” in the tax sense than countries in the region. However, it still has a lot of work to do to explain to foreign investors, who deem the nominal tax rates of 24% and 36% - which can go up to 42.48% with surtax included – to be exceptionally high. Nol thus suggests lowering the nominal tax rates in order to improve the public perception.