From January 1, 2024, the new law "On income tax" comes into force. Through the new law, employment income will be taxed at progressive rates of 13% and 23%; net business income is taxed at progressive rates of 15% and 23%; investment income is taxed at the respective rates of 8% dividend and profit sharing and 15% other investment income.

Clarified guidance and examples for income tax; From January 1, 2024, progressive tax from 15 to 23% for the self-employed in the free professions

The Council of Ministers has ready the draft decision for the decision which has specified the analytical list of services, including professional ones, provided by self-employed natural persons and entities, with annual income up to 14 million ALL per year.

These will pay personal income tax or corporate income tax, starting from fiscal year 2024, consists of activities, according to the codes provided in the Nomenclature of

Economic Activities (Rev.2), presented analytically in the table that is given in full at the end of the article. The list contains 262 professions.

According to the decision, in cases where taxpayers are not clear about the categorization of the economic activity they exercise, or about the rate of income tax related to their activity, the Directorate of

General of Taxes, based on the Nomenclature of Activities, determines the division and activity to which the relevant taxpayer belongs

The decision states that the list of services will be subject to taxation from January 1, 2023.

Through the law "On income tax" from January 1, 2024, self-employed people of free professions will no longer be treated as a small business with 0%, but the net income (profit) from the business, after the expenses incurred according to Article 22 of according to the law, the self-employed will be taxed at the rate of 15% for the band 0 to 14,000,000 ALL, and above 14,000,000 ALL, the 23% profit tax is imposed.

(Source: Monitor)