On June 17, 2021, the State Administrative Council (“SAC”) enacted SAC Law No. 20/2021 amending the Union Tax Law 2020 (“UTL”) in relation to income tax rates (“PIT”). From July 1, 2021 through September 30, 2021, the PIT rates payable on income from undisclosed sources will be temporarily lowered to the new rates as follows:
The PIT rates under the UTL before the cuts are 6% to 30%.
If a taxpayer can provide evidence of the source of the income that was used to purchase, build real estate, acquire or set up a new business or expand the business, the income tax on this income is assessed according to the tax rates set out in the UTL and paid. However, if the source of the income cannot be proven or disclosed, the income concerned must be illustrated and paid separately from the demonstrable income according to the above tax rates.