Income tax and mandatory social charges

⮚ For people who carry out independent activities or freelance professions, sponsorship, and patronage expenses become fully non-deductible expenses and do not reduce income tax. After January 1, 2024, only expenses with private scholarships are deductible from income tax in the percentage of 5% of a calculation base.

⮚ If a taxpayer carrying out independent activities/free professions registers a loss, this can be carried forward in the next 5 consecutive fiscal years. The loss carried forward is limited to a maximum of 70% of the annual net income in the same income category. This procedure also applies to losses generated from agricultural activities, forestry, fish farming, or income from intellectual property rights, when all these activities are taxed in the real system.

⮚ The obligation to withhold the tax rests with the payer. The annual net income from the transfer of the use of goods, other than that paid by legal entities or other entities that have the obligation to keep accounting records, from the leasing of agricultural goods, as well as from the rental for tourist purposes of rooms located in personally owned homes, is determined by the deduction from the gross income of the expenses determined by applying the 20% rate on the gross income.