STANDING COMMITTEE APPROVES TAX REMISSIONS FOR MEDIA COMPANIES

The parliamentary Standing Committee on National Security, Defense and Public Order approved legislative amendments, aimed at reducing the tax burden on media companies.

According to the Parliament, the mass media companies which have the status of legal person may be exempted from payment of the tax on income, received from the activity on the basis of broadcasting license. The remissions also cover the revenues from creating audiovisual programs, issuing of periodicals and distributing of information by means of other communication facilities.

For the employees of economic agents, the tax on income is levied from the monthly revenue, established in an individual labor contract, the amount of which does not exceed the economy’s average salary, forecasted for the due year. The average income that exceeds this rate will be regarded as free income.

Authors of the project propose to replenish the Tax Code with a point, according to which an 18% tax is levied from media companies from dividends, including those in the form of stock or participant shares. The payment will be conducted not later that before the date of 25th of the month, next after the salary payment.

The provisions will be applied within the tax period of 2019-2025.