As
we have
advanced
in
previous articles
the
government is
working
on a
deep fiscal
reform
in
order to
boost
the economy and
creating
jobs.
Final approval
of the
tax
reform
will
involve a modification
of
the
retentions
that
apply
to the
salaries of managers and
directors
of
corporations.
This
measure is
in line
with
the
reduction
applied
by self
performing
professional
activities (see here).
When the new law comes to effect the withholding income tax will be 20% for the year 2015 and 19% in 2016 approved, in companies with a turnover of less than € 100,000, The rest of administrators and members of boards of Directors will have a retention of 37% in 2015 and 35% in 2016.
Currently the retention rate applied is 42%, an excessively high rate considering it does not take into account the conditions of the company or the amount of compensation, leading to situations in which the imbalance between gross pay and net small business is just remarkable and represents an obvious effort or for the company, you have to establish a high-paid administrator or undermine it, having to settle for a very small salary and liquid then wait for the Tax Office to return the rest on your income tax.
The truth is that the measure is positive but would be much more if the system of calculating retention that is used with the other workers are equated, considering the amount of perceptions and family situation and not the income levels of the company. It is also questionable why the level of income of the company is fixed at 100,000 euros to apply the reduced rate. Yet it would be also interesting the reduction of the general rate of 42% to 35%.. Government is expected to approve the tax reform in September to be applied almost certainly at least since 2015.
When the new law comes to effect the withholding income tax will be 20% for the year 2015 and 19% in 2016 approved, in companies with a turnover of less than € 100,000, The rest of administrators and members of boards of Directors will have a retention of 37% in 2015 and 35% in 2016.
Currently the retention rate applied is 42%, an excessively high rate considering it does not take into account the conditions of the company or the amount of compensation, leading to situations in which the imbalance between gross pay and net small business is just remarkable and represents an obvious effort or for the company, you have to establish a high-paid administrator or undermine it, having to settle for a very small salary and liquid then wait for the Tax Office to return the rest on your income tax.
The truth is that the measure is positive but would be much more if the system of calculating retention that is used with the other workers are equated, considering the amount of perceptions and family situation and not the income levels of the company. It is also questionable why the level of income of the company is fixed at 100,000 euros to apply the reduced rate. Yet it would be also interesting the reduction of the general rate of 42% to 35%.. Government is expected to approve the tax reform in September to be applied almost certainly at least since 2015.
No comments:
Post a Comment