Accountants and lawyers will send the income tax law to the Constitutional Court

2023-11-22 09:31:00, Aktualitet CNA

Accountants and lawyers will send the income tax law to the Constitutional Court

Illustrative photo

The Institute of Chartered Accountants (IKM), the Institute of Authorized Accounting Experts (IEKA) and the National Bar Association (DHKA) are expected to send the new law "On Income Tax" to the Constitutional Court.

Leaders of the Institute of Chartered Accountants told "Monitor" that they have already agreed with other organizations of free professions to send the law to the Constitutional Court. The law will be sent to the Constitutional Court after the publication by the government of the VKM that defines the free professions affected by it.

The Law "On Income Tax" starts implementation from January 1, 2024. The law defines two implementation deadlines. For the self-employed of the free professions, the progressive tax from 15% to 23% will begin to be implemented from January 1, 2024, while for small businesses (including the self-employed categories) the effects of the law will begin to apply from January 1, 2029.

With 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.

Whereas if a self-employed person derives 80% of gross income (collected income) from 1 single client, or 90% of gross income (collected income) from less than 3 clients, for calculation purposes of his annual/monthly net income tax liability (collected income minus visible business expenses), the salary tax rates will be applied.

The chairman of the governing council of the Institute of Chartered Accountants (IKM) Mr. Sotiraq Dhamo earlier claimed that the new law is illegal, creates inequality between taxpayers and encourages evasion.

"Treating self-employed income as salary income is illegal. The extension of the law to self-employed workers will have negative effects for many reasons.

The self-employed are businesses, they take risks, they have no fixed income and cannot be called salary income. It is evasive as it considers the same employees with the same category of employees as other employees", he declared.

While members of the National Chamber of Advocacy warned that the implementation of this law for lawyers is expected to bring another increase in service fees, after their increase in the cost of the new judicial map.

Earlier, the instruction for the implementation of the law was also published in the official notebook.

Through concrete examples, the instruction determined that through the new law, income from employment will be taxed according to the progressive rates of 13% and 23%; net business income is taxed at progressive rates of 15% and 23%; investment income is taxed according to the respective rates 8% dividend and profit sharing and 15% other investment income./ Monitor