Most measures will enter into force on 1 January 2016. It is expected that Parliament will approve these measures before the end of the year.
The following reductions of taxes/social security contributions have been decided:
- The employer social security contributions will be reduced from 33 % (actual) to 25 %. For wages which already benefit from an actual rate of 25%, the contributions will be further reduced by 4 to 5%.
- SMEs with a maximum of 6 employees will not pay social security contributions for the first employee. The existing reduction of contributions for the first 5 employees will be extended to the sixth employee.
- People who are self-employed will only pay 20,5% social security contributions on the first bracket of their business income (instead of 22%).
- Individual income tax will be lowered, mostly benefiting low and medium wages, through:
- an increase of the tax-free sum - the abolition of the individual tax bracket of 30% and an increase of the lower threshold of the individual tax bracket of 45%- an increase of the lump-sum deduction of business expenses
On the other hand, the following taxes will be raised/introduced:
- Increase of excise duties on alcohol, tobacco and diesel (except professional diesel) starting 1 November 2015. The excise duties on petrol would be reduced.
- Introduction of a tax on soda drinks:
- Both sugary drinks, light drinks and drinks without sugar- In the future, the tax could be extended to other unhealthy food
- The withholding tax on movable income (interest, dividends) will go up from 25 to 27 % beginning 1 January 2016 (no changes expected for the classical savings deposits)
- Introduction of a capital gains tax of 33% on quoted shares realized within 6 months. There would be no compensation with capital losses.
- Introduction of a new round of fiscal regularization.