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Under the new tax bill, which has been put to the public consultation, several amendments have been made, such as:

 

• Reduction of the corporate tax rate from 28% to 24%

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• Establishment of a 9% introductory tax rate for persons, freelancers, farmers, employees and retirees, from 22% which is today

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• Reduction of the income tax advance to 95% of the resulting tax on legal entities

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• Increase of the nontaxable income per 1,000€ for each protected member

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• Exemption from the solidarity levy for all individuals with special needs with a disability rate of over 80%

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• VAT reduction for infant goods from 24% to 13%

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• Reduction of VAT on motorcyclist helmets and baby seats from 24% to 23%

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• Dividend tax rate is reduced from 10% to 5%

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• Suspension of VAT imposition on buildings licensed from 01/01/2006 onwards, and the capital gains tax on the conveyance of cars

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• Decrease of the limit from 500€ to 300€ for cash transactions. Purchases over 300€ must be made through electronic transactions.

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• Employees, retirees, freelancers and earners should spend 30% of their actual income by electronic means, with a penalty of 22% on the difference, in case that the above limit is not reached.

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• The amount of the solidarity levy is not included in the calculation of the actual income.

 

The new tax scale regarding income tax in 2020:

Income (salaries, pensions, business activities)