Tax reduction

Reducing of the tax base

• The tax base is reduced for the performed investments in material resources (real estate, installation and equipment) and immaterial resources (computer software and patents) for expanding of its own activity, in the amount of 30% from the performed investments, and the made reduction cannot to be more than 50% from the assessed tax base for the same tax period.
• As investments in material and immaterial resources are not considered: investments in passenger vehicles, furniture, carpets, audiovisual things, white goods, work of art from the artistic and applied art and other decorations for equipping of the administrations premises.
• The taxpayer who invests in passenger vehicles in the activities: renting of vehicles (rent-a-car), taxi transport, vehicles for drivers training and special vehicles (funeral vehicles, ambulance, vehicles for assistance and etc.) has a right of reducing of the tax base in the amount of the performed investment, but no more than the amount of the tax base for the same tax period.
• For achieving the right of tax reduction, the basic condition is the taxpayer not to expropriate or in other way transfer the assets for a period of three years, starting from the year in which the investment is performed.
• If the taxpayer at the end of every accounting period does not prove documented that the amount of tax base reduction are invested for the purposes and the basic assets are not given up, the taxpayer loses the right of tax exemption.
• If the taxpayer has not used the investments for the purpose for which he used the reduction of the tax base, the tax is calculated in an amount increased for the interest stipulated for taxes not paid in the prescribed period.

Reducing of the tax base for annual personal exemption

• The tax base is reduced for the amount of the annual personal exemption calculated according to the duration of the performance of the activity (monthly amount of tax exemption assessed for the year multiplied by the number of months in which the taxpayer has worked).

Tax exemption

On the basis of purchased and put in use cash-registers

To the taxpayer who is obliged to introduce and use cash-registers, i.e. fiscal apparatus and integrated automated management system, the calculated tax for purchased up to ten cash-registers is reduced, in the amount of their value.
The taxpayer realizes the exemption with approval of the Public Revenue Office by submission of Request for approval for tax exemption based on introducing cash-registers, i.e. fiscal apparatus and integrated automated management system (form PDD 02).
The request PDD-02 is submitted until 20th of January the year following the year for which the request is submitted.
If this right is not used, it is fully transferred in the upcoming period, until it is fully utilized.

For taxpayers who start doing independent activity for the first time

Exempted in a period of three years (according to the Law on employment and insurance in case of unemployment):

• Employer – who starts performing independent activity as sole- proprietor and
• Natural person – who performs activity for the first time, provided he/she submits a proof from the competent register body that before starting performing the activity he/she has not been registered.