One of the most relevant changes to the income tax act presented by the Government to Parliament is that the tax rate for legal entities will be reduced to 22% in 2008, to 20% in 2009 and to 19% in 2010.
Income from investment securities and collective investment securities will be exempt from personal income tax if these securities were held for at least six months and the seller does not have direct or indirect interest in the share capital or voting rights exceeding five percent 24 months before the sale. According to the provisional regulations, securities acquired before the end of 2007 will be taxable under the existing legislation. In all other cases, income from the sale of securities is exempt provided the time between their acquisition and transfer exceeds five years.
In the field of property tax it is proposed that farm land should be exempt from real estate tax and that a wider range of taxpayers should be exempt from inheritance and gift tax. As far as exicse duties are concerned, the draft amendment proposes to cancel the preferential taxation of waste oils and some bio-fuels and increasing the tax rates on cigarettes to the minimum rates applicable in the EU.
The Chamber of Deputies approved an Act amending the Tax Administration Act containing also amendments to the VAT Act.  Among the important changes is the application of the right to deduct input VAT not only in the VAT return but also during a tax inspection. Late payment interest should be applied instead of the 0.1 percent penalty for an incorrect declaration of VAT.  The penalty for late VAT registration would be fixed as 10 percent of the total income or revenues for taxable supplies effected without the application of VAT (currently up to 10 percent).
The Senate returned the bill to the Chamber of Deputies asking for further changes.