The Ministry of Development is working on a draft law which will introduce simplification for entrepreneurs in tax and economic law.
The planned changes will, among others, make it easier for entrepreneurs to use the so-called ‘tax relief for bad debts’, which we wrote about last week.
What will change?
- As regards the tax on goods and services, the time limit after which an entrepreneur will have the right to benefit from the tax relief will be reduced. Currently it is 150 days.
- Income tax will be deductible for the amount owed to us by the debtor unless the debt is settled or disposed of within 120 days of the payment due date. Thus, the debtor will be obliged to increase the amount to be taxed.
Currently, the project is on the list of intra-departmental work. After elaboration the project will be published on the website of the Government Center for Legislation.