The changes to the IRS Code introduced by the 2016 budget were quite limited due to time constraints which had resulted from the delay in forming a government.
There was a slight easing of the tax burden in that the first four scales of the tax table were increased by .5 of one percent.
The marriage coefficient was reintroduced as it had worked until 2014 in that a couple's joint income was halved to apply the tax rates with the result being doubled providing the couple opted for joint taxation. In 2015 dependents were included in the calculation.
To compensate for this the deductions against tax for each dependent were increased.
In cases when the dependent child or parent who are handicapped the deduction increases to € 1,048.05 providing they do not have income superior to the minimum pension.
In general the effect of this change will benefit tax payers on a lower income who have children.
Although the changes to the income code were in fact very limited the government has obtained a legislative authorisations to introduce during 2016 the following changes to the Income Tax Code;
The main changes to the 2016 corporation tax code were the following;
VALUE ADDED TAX
The only significant change to the Value Added Tax regime was the following;
On the 1 July 2016 the VAT rate on restaurant meals will go down from 23% to 13%.
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