New Tax Bill: The 4 changes it brings

The new tax bill brings significant changes for employees and businesses, as announced by the leadership of the Ministry of Finance. The amendments will impact the submission of tax returns, employees receiving tips, and freelancers paid through "service contracts" (block invoices).

Detailed Changes:

Tips: A tax-free limit of €300 per month is established for tips received via POS, without social security contributions. Any amount above this limit will be taxed based on existing tax brackets, but without additional social security charges. This new regulation is expected to take effect in November 2024.

Abolishment of Business Fee: From 2025, the business fee will be abolished for those paid through block invoices, benefiting tens of thousands of professionals who are effectively working as employees. This move aims to ease the burden on freelancers, especially in large cities.

Tax Returns: A fixed submission period from March 15 to July 15 is introduced. For taxpayers who pay the full amount of tax by the end of July, a staggered discount of 2%-4% is available, depending on the date of submission. These changes aim to simplify the process and ensure timely filing of tax returns.

Administrative Changes at IAPR: A new administrative model will be implemented at the Independent Authority for Public Revenue (IAPR) to improve its efficiency. Among the changes, the possibility of a second renewal of the administrator’s term is introduced, along with the hiring of specialized staff from the private sector for organizational and digital matters, excluding tax and customs roles.

These changes are part of a broader tax policy modernization plan announced by the government. The new framework aims to facilitate taxpayers, improve tax compliance, and enhance the operational efficiency of the IAPR.