Tax reform to do away with ‘tekmiria’

Tax reform to do away with ‘tekmiria’

The tax system reform will be a key part of the ruling party’s program for the next four years, aiming to abolish anachronistic methods of determining income, such as the use of assets owned (known as “tekmiria”), while activating ways to safeguard public revenues.

Changes are planned on the taxation of incomes declared by freelancers and the self-employed, with tax evasion reduction based on the interconnection of cash registers with card terminals (PoS) and the extension of the mandatory use of PoS everywhere.

The aim is to reduce cash payments and to increase taxpayers’ use of cards in daily transactions. This way, Finance Ministry officials explain, the turnover of businesses and the amount of transactions can be monitored, leading simultaneously to the reduction of the VAT shortfall and the increase of public revenues. In June 2023, therefore, the interconnection of cash registers with PoS will begin, a development that allows the government and the tax administration to abolish “tekmiria” use, for example.

Via electronic audits, online bookkeeping, cross-checking of income and bank deposits, and card usage, tax authorities will then be able to identify real incomes.

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