Draft bill provides tax incentives for foreign investments

A reduction in business tax from 28 to 24 percent for 2019 and incentives to link large investments to a reduction in taxable foreign income are some of several incentives for investments are some of the measures the government is seeking to introduce in a new draft bill that was presented for public consultation late on Thursday.

The bill also proposes that dividends tax be reduced from 10 to 5 percent, while relieving company bonds in official markets from income tax and the solidarity levy.

It outlines extensive measures for reduce the burden on households, including the introduction of a flat tax rate of 9 percent for workers, contractors and pensioners - instead of the current 22 percent - and a higher tax exemption for dependents.

For the construction sector, the draft bill seeks to suspend VAT payments for all licenses issued as of January 1, 2006, and...