Taxation boost for construction
The tax bill that was submitted to public consultation on Tuesday renders permanent the tax deduction for real estate renovations, among other provisions.
In fact, the discount from the tax due will be double compared to the current regime and will be distributed equally over a period of five years, with a maximum total spending limit of 16,000 euros. Furthermore, it will not only concern the services provided, but also the purchase of goods, which was not the case with the previous regime.
This is considered to be a substantial incentive that can significantly contribute to limiting tax evasion in the construction industry.
The new draft law also provides for the extension of the incentives for those who join the electronic invoicing system, the increase of fines for purchases of more than €500 in cash, as well as the prohibition of the purchase of real estate with cash.
Indirect inspection techniques for determining income are also expanded. These techniques are based on information such as bank deposits, cash expenditures and the taxpayers’ liquidity conditions.
