Tax ceiling for large families causes rift in coalition
One of the most contentious clauses in a new tax bill being drawn up by the government is the abolition of a higher exemption ceiling for large families.
The government will this week seek to bridge disagreements the emerged among the coalition partners in a meeting on Friday in regards to this measure.
The abolition of the increased exemption would entail a major addition to the tax burden on families with three or more children, as well as smaller increases for families with one or two kids.
The new law also sees a shift in taxation for the self-employed, as they will get taxed from the first euro of their net income with a 26 percent rate up to 50,000 euros per year and with a 33 percent rate for any income that exceeds 50,000 euros. Small enterprises will be taxed by the same rates, but their tax deposit will increase from 55 percent to 80 percent.
Rental revenues will be taxed with a 10 percent rate up to 12,000 euros per year and with a 33 percent rate for any revenues in excess of 12,000 euros.
