Topic : Taxation
Authors : Iliyan Kostov, Viara Todorova
DGKV's latest tax newsletter focuses on the recent developments in the Law on Value Added Tax, the Law on Corporate Income Tax and the Law on Personal Income Taxation.
Novelty is the envisaged taxation with VAT of food vouchers following the date of entry into force of the LVAT Bill – 18 February 2022.
Other changes introduce clarification in relation to Brexit and supplies made from or to Northern Ireland.For the purposes of LVAT, there are a number of circumstances in which Northern Ireland is deemed to be a territory of an EU member state.
As regards the LCIT there is a tax rate cut from 10% down to 3% for expenses provided in kind related to personal use of company assets, effective as of beginning of 2022.
Among the changes in the personal income taxation of importance is the one related to revocation of the 8% final tax on bank deposits interest and the full exemption of such interest income when deriving from EU based bank deposits.